SSRS Chart Moving Average

The Simple Moving Average (SMA)is calculated by adding the prices of a security for a set number of periods and then dividing the total by the number of periods. This results in the security's average price over the given period. Simple Moving Averages provide equal weight to each daily price, making them a straightforward and easy-to-use tool for analyzing market trends.

The Weighted Moving Average (WMA) is a popular tool that provides a more nuanced analysis of market trends than the Simple Moving Average. Unlike the Simple Moving Average, a Weighted Moving Average gives more weight to recent data and less weight to past data. This is achieved by multiplying each of the previous day's data by a weight, which is determined by the index of the data. The most recent data is given the highest weight, while the oldest has the lowest. This approach enables investors and analysts to more accurately capture the most recent trends in the market and make informed decisions based on the most up-to-date information.

The Exponential Moving Average (EMA) is a widely used financial tool that provides a more nuanced analysis of market trends than other Moving Average types. The Exponential Moving Average places more weight on recent prices, giving investors and analysts a more accurate picture of market trends. The calculation of the Exponential Moving Average involves applying a percentage of today's closing price to yesterday's moving average value, which results in a new average that is more responsive to recent price changes.

The Modified Moving Average (MMA) is a commonly used financial tool similar to the Exponential Moving Average (EMA). The key difference between the two is the period of the functions used to calculate them. For example, a 14-day MMA is equivalent to a 27-day EMA. Despite this difference, the MMA and EMA are designed to give more weight to recent prices, giving investors and analysts a more accurate picture of market trends. The calculation of the MMA involves applying a percentage of today's closing price to the previous moving average value, similar to the EMA. This results in a new average that is more responsive to recent price changes and better indicates current market conditions.