How to choose the value of n in the moving average?
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Explanation:
Simple Moving Average
The simple moving average (SMA) was prevalent before the emergence of computers because it is easy to calculate. Today's processing power has made other types of moving averages and technical indicators easier to measure. A moving average is calculated from the average closing prices for a specified period. A moving average typically uses daily closing prices, but it can also be calculated for other timeframes. Other price data such as the opening price or the median price can also be used. At the end of the new price period, that data is added to the calculation while the oldest price data in the series is eliminated.
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