Dictionary
- Moving Average Convergence/Divergence MACD
- The crossing of two exponentially smoothed moving averages that are plotted above and below a zero line. The crossover, movement through the zero line, and divergences generate buy and sell signals.
- Moving Average Crossovers
- The point where the various moving average lines intersect each other or the price line on a moving average price bar chart. Technicians use crossovers to signal price-based buy and sell opportunities.
- Moving Average Model
- A time series equation representing an observed value at time t as a linear combination of present and past random shocks et (forecast errors). A moving-average process of order Q, MA(q), may be written: Pt = et – b1et-1 – b2et-2…bqet-q.
- Multiple Linear Regression
- More than one independent variable is used to account for the variability in one depen dent variable.
- Mutual Fund
- A company that invests money of its shareholders in a variety of areas, usually stocks.