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What is the difference between exponential and 200-day moving averages?

The longer the period your moving average covers, the greater your lag—meaning how responsive your moving average is to price changes. A 10-day exponential moving average, for instance, will react quickly to price turns, while a 200-day moving average is more sluggish and slower to react to changes.

What are the different types of moving averages?

Common time frames include 20-day, 30-day, 50-day, 100-day and 200-day moving averages. While a moving average is useful on its own when analyzing different types of investments, it also forms the basis of other types of technical indicators, such as the Moving Average Convergence Divergence (MACD) and the McClellan Oscillator.

How do you use a moving average to analyze a stock?

Using a moving average to analyze a stock can help you filter out the “noise” that comes from random price fluctuations. By looking at the direction of the moving average, you can get a sense of whether the price is generally moving up or generally moving down.

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