Question

What does 20 day moving average mean ? when to buy or sell ?

What does 20 day moving average mean ? when to buy or sell ?

Homework Answers

Answer #1

The Moving average refers to the average price of the stock over a given period of time, It is used to analyse the price of stock and the movements in it, The Trend directions and minimum support level and resistance level is predicted below which stock may not fall and the buying strategy is used at this point to gain profit while the selling strategy is adopted when the Moving average is at highest because it will go down from that point.

The 20 days Moving average would mean the average prices of stock over the period of 20 days.

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