#### Overview of this book

Scala for Machine Learning
Credits
www.PacktPub.com
Preface
Free Chapter
Getting Started
Hello World!
Data Preprocessing
Unsupervised Learning
Naïve Bayes Classifiers
Regression and Regularization
Sequential Data Models
Kernel Models and Support Vector Machines
Artificial Neural Networks
Genetic Algorithms
Reinforcement Learning
Scalable Frameworks
Basic Concepts
Index

## Moving averages

Moving averages provide data analysts and scientists with a basic predictive model. Despite its simplicity, the moving average method is widely used in a variety of fields, such as marketing survey, consumer behavior, or sport statistics. Traders use the moving average method to identify different levels of support and resistance for the price of a given security.

### Note

An average reducing function

Let's consider the time series xt = x(t) and function f(xt-p-1,…, xt) that reduces the last p observations into a value or average. The estimation of the observation at t is defined by the following formula:

Here, f is an average reducing function from the previous p data points.

### The simple moving average

The simple moving average is the simplest form of the moving averages algorithms [3:1]. The simple moving average of period p estimates the value at time t by computing the average value of the previous p observations using the following formula.

### Note

The simple moving average

M1: The...