Moving Average (เส้นค่าเฉลี่ยเคลื่อนที่)

A Moving Average (MA) smooths out price movement by averaging the price over a chosen number of recent candles. It is drawn as a single line on the chart. The most basic type is the Simple Moving Average (SMA): add up the closing prices and divide by the number of candles.

Example

Suppose the last 5 daily closing prices are 10, 11, 12, 11 and 11.

• 5-day SMA = (10 + 11 + 12 + 11 + 11) ÷ 5 = 55 ÷ 5 = 11

Tomorrow the price closes at 13. The oldest price (10) drops out and the new one is added:

• New 5-day SMA = (11 + 12 + 11 + 11 + 13) ÷ 5 = 58 ÷ 5 = 11.6

The average "moves" forward with each new candle, which is where the name comes from.

Why it matters

Beginners use a Moving Average to see the general direction of the market more easily. If price is mostly above the line and the line is rising, that suggests an uptrend. If price is mostly below a falling line, that suggests a downtrend. A shorter period (like 10) reacts faster, and a longer period (like 200) is smoother and slower.

Common beginner mistake

A Moving Average is based on past prices, so it lags behind the market. It does not predict the future. It also tends to give confusing signals when price moves sideways. Treat it as a tool for reading the trend, not as a guaranteed buy or sell signal.