1.1.3.3 Moving average line

Moving average line: The line that connects the average price.

This sentence seems very simple, its meaning hides a lot of relevant content, need to be explored.

Let's first look at a table that simulates price fluctuations.

【example】

According to price fluctuations, we can plot the price fluctuation curve as shown below:

If the recorded data is statistically calculated (by weighted average method), the average price is as follows:

Redrawing the chart and putting the price volatility and the average price together form a form that investors often browse.

The same principle, the average price in the Candle stick chart is also calculated using the same principle, and together with the candle stick, for traders to use.

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