MA 10
Trend
The average of the closing prices over the past 10 days. A short trend line that filters out daily noise without lagging much.
Construction & calculation
- Take the closing prices of the last 10 trading days and compute the average.
- Each new day the oldest price drops off and the newest is added: the average slides along.
- In the scanner the MA is drawn as a line over the price chart (overlay).
MA(10) = (C1 + C2 + ... + C10) / 10
Interpretation
- Price above the MA10 = the short term is pointing up; below it = down.
- The slope often matters more than the exact crossing: a rising MA10 beneath a rising price is a healthy upward structure.
- In a strong trend the MA10 often acts as gliding support (up) or resistance (down).
Watch-outs & pitfalls
- Very sensitive: in a sideways market the price crosses the MA10 constantly, producing many false signals.
- An MA lags the price by definition. Use it to confirm a trend, not to predict tops or bottoms.