Explore BrainMass

Explore BrainMass

    Moving Average Explanation and Calculation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I am trying to understand the following question:

    If the overall trend of the dependent variable is decreasing, will a k-period
    moving average be greater than a moving average obtained with k minus 1 periods?

    If so, why?

    I cannot seem to grasp this concept and I am looking for some clarification.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:22 pm ad1c9bdddf

    Solution Preview

    nvestopedia explains Moving Average - MA...
    Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or "noise", that can confuse interpretation. Typically, upward momentum is ...

    Solution Summary

    This solution explains the concept of moving average.