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Moving Average

Technical indicator that smooths price data over time to identify trends and reduce short-term volatility noise.

A moving average is a technical indicator that smooths price data by averaging values over a specified period. It helps identify trends and momentum.

In oil trading, moving averages are used to spot support, resistance, and trend direction. Common periods include 20-day, 50-day, and 200-day averages.

Crossovers between short- and long-term averages often generate trading signals. These are widely followed by market participants.

While simple, moving averages remain influential due to their broad adoption.