Stock Market Data Charts and Simple Moving Averages

A statistical tool that allows an investor to reduce the impact of price fluctuations and to focus on patterns and trends; an example is the simple moving average (SMA).

A smoothing technique calculated by determining the arithmetic average or mean closing price over a given period of time.

A measure of central tendency found by calculating the sum of numbers in a data set and then dividing by the number of elements in the data set.

Indicators that use past data. An example is simple moving averages which investors use when they want to identify and follow a trend in prices.

When a stock chart depicts moving averages for two different intervals, the graph with the shorter time interval is known as the ____________________________

When a stock chart depicts moving averages for two different intervals, the graph with the longer time interval is known as the __________________

Occurs when one time interval moving average graph crosses over another moving average; this is a possible signal that a stock trend reversal might be near.

Pictorial information on stocks from a day’s worth of data to multi-year data trends; most stock charts present historical information about the trading prices and volumes of a particular stock

A chart made up of two graphs; the top part shows daily information about the day’s high, low, open, and close prices of that particular stock; the bottom part shows the daily volume

A chart, like a stock chart, but with a top line that indicates the high price, and a low line that indicates the low price for a given period; the rectangular region, known as the real body, is displayed in two different colors; the green candlestick indicates that the closing price is greater than the opening price and the red candlestick indicates the closing price is less than the opening price.