I'm having an issue with some exchanges, where I look at the moving average, and it seems as if its too closely following the pattern of the latest trades. I'll give an example of this:
https://imgur.com/a/eKUhzThis shows a 5min per candlestick chart, that goes back only 14 hours. The blue line is the 7 day, the orange line is the 25 day and the purple line is the 100 day. It looks like the 7 day moving average is following exactly the pattern of the candlesticks. Also the other moving averages are showing more movement than I would expect, given that it is an average of the days, and I would expect the line to be quite smooth. I might expect this on an exponential moving average, where newer results are weighted higher, but not for a simple moving average.
This may be quite a simple question, but can anyone explain why this might be the case?
Thanks
