Investment & trading encyclopedia

Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.

80 explained termsView all courses

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Technical analysisBeginner

Moving Average

A moving average is the average price over the most recent N periods, recalculated as each new period arrives so that the line smooths short-term noise. The simple moving average (SMA) weights every period equally, while the exponential moving average (EMA) weights recent prices more heavily.

Technical analysisIntermediate

Moving Average Convergence Divergence (MACD)

MACD is a trend and momentum indicator, created by Gerald Appel, that subtracts a longer exponential moving average from a shorter one and compares the result with its own smoothed signal line. Its default form uses 12-, 26- and 9-period settings.