The market’s cracking jokes again: $LYN ’s daily chart has moved above the MA50 (0.02318).
Moving averages are famous for lagging—about as much as I do when making decisions.
On a more serious note, a moving average is the average closing price of the past N candlesticks. Each time a new candlestick appears, the calculation moves forward by one, and the resulting line is the moving average.
The same reading can mean completely different things in different market conditions, so don’t blindly apply a single rule.
Moving averages are famous for lagging—about as much as I do when making decisions.
On a more serious note, a moving average is the average closing price of the past N candlesticks. Each time a new candlestick appears, the calculation moves forward by one, and the resulting line is the moving average.
The same reading can mean completely different things in different market conditions, so don’t blindly apply a single rule.