Moving averages

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

It is used to predict the direction of a particular trend of an Option.

Moving averages are similar to averages in mathematics. The moving averages are used in Options trading as a popular technical indicator to identify the direction of a particular trend. Moving Averages are of two types: Simple and Exponential.

An exponential average is considered to be more effective than simple average as it gives added weight to the latest data.

Answered on

Open an Instant Account with Zerodha

Zerodha (India's Best & No. 1 Broker)

  Special Offer - Free Equity Delivery and Mutual Funds

  • Brokerage-free equity delivery trades.
  • Brokerage-free Direct Mutual Fund.
  • Pay ₹20 per trade for Intraday & F&O.
  • The best trading platform in India.

Open Instant Demat Account Read Reviews
Loading...