November 1, 2026 · 10 min read
Moving Averages Through the Outer Box
Builds on Chapter 9, Chapter 14, Chapter 17, Chapter 19
The moving average is the most widely used indicator there is. Almost every chart you will ever see has one on it, and the 200-period average is quoted in market news nearly every day. This lesson explains what the different kinds measure, how to read three of them together, why the 200 matters more than its arithmetic suggests, and how to read all of it on the ladder.
What a moving average is
A moving average is the average closing price of the last N bars, recalculated on every new bar. As a new bar arrives, the oldest one drops out, so the average “moves” along with the chart.
Two things follow from that definition:
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