Moving average is used in technical analysis to smooth out volatile market activity
within a trend. This eliminates the noise caused by short term fluctuations
on shorter time periods and focuses on a more stable looking trend vectors on
a longer term perspective. The sensitivity of a moving average depends on the
filter used. It is derived by adding up a series of closing prices and dividing
it by a specified time period for example, the average closing prices on a 5
minute time block of of a stock price ranging from 100.10, 100.15, 100.30, 100.33
and 100.40 is 100.256.