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Average up |
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Average upA strategy used by investors to lower the overall cost of shares by buying as many shares with a given amount of capital in an increasing market. Buying $1000 worth of shares at $30, $35, $40, and $45, for instance, will make the average cost of the shares $37.50.Average up Similar MatchesAverage discount rateAverage discount ratePurchasers tender their competitive bids on a discount rate basis. The weighted, or adjusted, mean of all bids accepted in Treasury bill auctions. Average propensity to consumeAverage propensity to consumeThe fraction of total (or perhaps disposable) income spent on consumption. Contrasts with marginal propensity to consume. Average Directional MovementAverage Directional MovementMeasures whether a market is in a trending mode and suitable for a trending following system. ADX is the 14-day exponential moving average of the Directional Movement. Average productAverage productThe average product of a factor in a firm or industry is its output divided by the amount of the factor employed. Moving averageMoving averageMoving averages are one of the oldest and most popular of technical analysis tools. A simple moving average is calculated by adding together the closing prices of a financial instrument over a certain number of days and then dividing the sum by the number of days involved. So, for example, the seven day average for a share price would be calculated by taking seven days worth of data, adding them together and dividing by seven.To calculate the *moving* average:Start by taking the first seven days worth of data and calculating the average value. This is your first point on the moving average chart.Then add the prices for Days 2-8 together and divide by 7. This is the second point on your moving average chart. Continue doing this for Days 3-9, 4-10 and so on, each time plotting the average on the chart. You now have a moving average chart.There are lots of ways of interpreting moving averages. The most basic is to treat a change of direction in the moving average as a signal to buy or sell, so if the moving average has been consistently rising and then it falls, that is a signal to sell.The classical interpretation, used by most technical analysts, is to compare the moving average with the price of the underlying share and to plot them both on the same graph. Before the share price rises above its moving average, buy the share; when it falls below its moving average, sell the share. That is putting it in extremely simple terms, and for a more sophisticated understanding, read one of the many books on the subject. An analyst would normally also consider other types of indicator before making a decision. Further SuggestionsAverage accounting returnImport-weighted average tariff Average collection period, or days receivables volume weighted average price Nikkei stock average Yield to average life Average tax rate Average propensity to import Moving Average Convergence/Divergence Weighted average remaining maturity exponential moving average average price Average rate of return (ARR) Average down Average life Average tariff Trade-weighted average tariff General Average Contribution Simple moving average Lipper Mutual Fund Industry Average General Average Expost average rate of return Average cost Average daily balance Average cost |
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