Moving average creates series of averages of different data selections. Mathematically viewed as low-pass finite impulse response filter. Used to smooth out short-term fluctuations and highlight long-term trends
KAMA was developed by Perry J. Kaufman in 1998, combining price action and volatility. Unlike traditional moving averages, it filters out market noise. Indicator aims to generate fewer false trading signals
Highs and lows are crucial for trend prediction in technical analysis. A high is a price peak before correction, while a low is a trough before pullback. These patterns help identify market sentiment and trend direction
200-day SMA represents average price over past 40 weeks. Calculated by adding closing prices and dividing by trading days. Appears as line on charts, meandering with longer-term price moves
SMA calculates average price using closing prices over specified period. Formula: SMA = (A1 + A2 + ... + An) / n. New closing price replaces oldest one each day
EMA tracks investment prices over time using weighted average. EMA gives more importance to recent price data than simple moving average. Multiple EMAs can be viewed together using moving average ribbons