Moving Average is a key analytical tool in the realm of finance, enabling us to closely examine the fluctuation of share prices. Simple Moving Averages and Exponential Moving Averages are two types of moving averages that are frequently utilized in this analysis. Simple Moving Averages take the average closing prices of shares over a specific time period, while Exponential Moving Averages give more weight to recent prices. Both are essential in understanding market trends and making informed investment decisions.
