Is a moving average the same thing as a trailing average, and if it is not, how is each calculated?
a simple example of each one will suffice.
Is a moving average the same thing as a trailing average, and if it is not, how is each calculated?
a simple example of each one will suffice.
A moving average is a type of trailing average. Trailing average just means that the information is historical. A trailing 12-month average price is the average of the price over the last 12 months. A moving 12-month price average would mean that every month you would drop the oldest month data point and add the new month data point. For example, a 12-month moving average would contain the months January 2009 – December 2009 and then after January 2010 completes, the 12-month moving average would contain February 2009 – January 2010.