Moving average
A moving average smooths a price series by recalculating an average over a rolling window. A simple moving average weights observations equally, while an exponential moving average gives more weight to recent prices; both lag price changes and do not predict future direction with certainty.
For hypothetical closing prices of 10, 12, and 14, a three-period simple moving average is 12. If the next close is 16, the updated average is 14.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure