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Chapter 3. Moving Averages and Rates of Change: Tracking Trend and Momentum

Chapter 3. Moving Averages and Rates of Change: Tracking Trend and Momentum

In the last chapter, you learned a method of constructing and maintaining moving averages. The method described there applies to the construction of what is called a simple moving average, a moving average that gives equal weight to all the data points included in that average. Other forms of moving averages assign greater weight to more recent data points so that the average is more influenced by recent data. This chapter provides additional information regarding the construction and application of moving averages.


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