Simple Moving Averages
“How can we make an average of constantly changing data?”
Data is all around us. And one often times we receive this data in real-time, whether it be in energy generation or the value of cryptocurrency. So how can we analyze any indicators of this data? Well, we can take a certain number of the most recent set of the data, such as the most last four data points, and simply take the average of that. This method is known as the Simple Moving Average. If the current data points are above or below the Simple Moving Average, then it will send a signal indicator.