When looking at a moving average what data point is used. For example, if I have the following price points (below) that encompass one minute worth of tick data. What one data point is used in calcuating a one minute moving average. Yes, I know it takes more than one data point for the average, I need to know how the individual data points are constructed. Is it the closing bid, closing ask, an average of the two or something different? What is traditionally used? bid / ask / time 1.21 / 1.23 23:15:10 1.18 / 1.20 23:15:11 1.19 / 1.21 23:15:12 1.19 / 1.21 23:15:15 1.17 / 1.19 23:15:20 Thanks STAQ
There are variety of ways you can get moving avg. (C+H+L)/3 (H+L)/2 etc. etc. etc. It all depends on what you use.
Traditionally it's the closing or last price of each bar. But most modern software allows the user to define the data being averaged.