what is moving average 
moving average is an indicator of the average price of a security over a predetermined period it s a lagging indicator because it looks at fluctuations that have already occurred but it can identify trends and momentum 4the bottom linea falling knife describes the process of a security rapidly and significantly plunging in price or value it s not defined by exact measurements or spreads but is rather a warning to pause and take a deep breath before jumping into a stock it s possible to make money with a falling knife but buying into a market that s plunging can be dangerous and result in wounds so proceed with care the comments opinions and analyses expressed on investopedia are for informational purposes online read our warranty and liability disclaimer for more info 