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Home/Glossary/Moving average

Market analysis · Rookie

Moving average

By Omer Rapaport · Content updated 11 September 2026

What does Moving average mean?

A moving average smooths a price series using a rolling set of observations. It helps describe trend but responds after the prices used in its calculation have occurred.

Example

A 20-period simple moving average averages the latest twenty selected prices.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

The period and price input affect the result; a crossover is a signal to test, not a guaranteed edge.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • IG - Moving averages

Related terms

  • Fundamental analysis
  • MACD
  • Relative strength index
← All 181 terms

Frequently asked questions

Does a moving-average crossover guarantee an edge?

The period and price input affect the result; a crossover is a signal to test, not a guaranteed edge.

Sources: IG - Moving averages

What is a practical example of Moving average?

Illustrative example: A 20-period simple moving average averages the latest twenty selected prices.

Sources: IG - Moving averages

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