Ever wonder how a Moving Average is calculated?
It is really very simple, but I'll go over it anyways.
For a 5 period moving average, each candle would represent one period.
The moving average would take the average of the last 5 periods and give an estimate of the 6th.
(1 + 2 + 3 + 4 + 5) / 5 = 6
A cross from underneath the MA is bullish and cross from above the MA is bearish.
Thanks for the math lesson 🧐🤪🧐
Did you learn anything?
@jondoe didn't know that the moving average would take the average of the last 5 periods and give an estimate of 6th.. great info !!
Thanks.