A moving average doesn't forecast where a stock is headed next. It flattens the daily wobble in a price chart so the underlying trend is easier to read — that's its entire job, nothing more. On its own it tells you nothing about tomorrow's close; it tells you where price has already been, averaged out over a fixed stretch of trading days. Strip away that distinction and most other mistakes traders make with moving averages follow from it.
Stockology Blog
Insights on AI-powered stock intelligence for African markets, from the Stockology team.