What data point is used when...

[Trend4Sight]

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

 

[rateesquad]

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.

 

[Lucrum]

Traditionally it's the closing or last price of
each bar. But most modern software allows the user to define the data being averaged.

 

[jack hershey]

Quote from rateesquad:

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.

lol