The moving average is an indicator in technical analysis that is used frequently to aid in filtering out the “noise” associated in FTSE movement with random fluctuations in price. Smoothing out price action.
Based on past FTSE prices moving average is considered to be an indicator that is trend following. FTSE simple moving average is the simple average over an established number of time periods of a security. The exponential moving average gives more recent prices bigger weight.
Averages are commonly utilized to determine support and resistance levels as well as to identify the direction of the trend.