FTB-C000301 / Statistical method

Moving Average

Moving Average is a smoothing statistic recomputed or recursively updated as the observation position advances.

Also known asMA

Foundation 5 linked topicsPublished

Definitions

In plain terms

It reduces short-term variation using a declared window or decay rule, such as SMA, WMA, or EMA.

Technical

A complete specification fixes input, ordering, window or decay, weights, seed, readiness, missing values, timestamps, and revisions.

Scope

Moving averages are descriptive filters and do not guarantee trend or forecast accuracy.

Examples

  • A governed lesson uses Moving Average only with declared inputs, timing, parameters, and edge-case behavior.

Common misconceptions

  • Moving averages are descriptive filters and do not guarantee trend or forecast accuracy.

Concept relationships

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F01-A01 Important
  • D07-F01-A02 Important
  • D07-F01-A03 Prerequisite
  • D07-F01-A04 Prerequisite
  • D07-F04-A03 Prerequisite

Evidence and governance

  1. Moving Average and Smoothing Methods NIST/SEMATECH · official standard

    Supports: preferred label, short definition, technical definition

    Limits: Forecasting notation and initialization can differ from technical-indicator conventions and must be translated explicitly.

Reviewed by
fintech-builder-batch-006
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.