( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH

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MOVING AVERAGE AS A STOCK VALUATION METHOD

    2 Author(s):  SOWMYA CHRISTINA, - DR M PRAKASH

Vol -  5, Issue- 8 ,         Page(s) : 77 - 82  (2014 ) DOI : https://doi.org/10.32804/IRJMSH

Abstract

Moving Average (MA) is one of the most widely used methods of technical analysis used by the traders and technical analysts to analyze the price movements of securities. MA method is easy to quantify and apply in investment decision-making or empirical tests. A moving average is an average of observations from several consecutive time periods. To compute a moving average sequence, we compute successive averages of a given number of consecutive observations. The objective underlying the MA method is to smooth out seasonal variation in the data. This technical-analysis method is intended to provide a decision rule concerning the appropriate investment position. The method involves a comparison of the most recent market price with the long MA and short MA of the price. a signal to buy (sell) is received when a short moving average crosses the longer moving average in an upward (downward) direction. There by helping the buying and selling decision easier.

1. JOURNALS AND ARTICLES
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