Calculating the weekly moving average of a stock smooths out price data over a given period of time, while helping investors understand the trend direction of stock as well as support and resistance levels.
Calculating the weekly moving average of a stock smooths out price data over a given period of time, while helping investors understand the trend direction of stock as well as support and resistance levels. A weekly moving average is highly sensitive to price changes because of its relatively short time frame. Because of their short time frame and price sensitivity, weekly moving averages are most commonly used by short-term traders. An increasing weekly moving average indicates the stock is in an uptrend, while a decreasing weekly moving average indicates a downtrend. Weekly moving averages are often compared to longer-term moving averages to assess how bearish or bullish the market is at that moment in time.
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