Understanding moving average(MA)

Beginner Questions
1

Good day!

recently i have been reading about moving averages at babypips but i dont quite understand the part
where it is stated that it is a lagging indicator. why and how is there a delay in the price ? Eventhough it is based on past prices, wouldn’t the indicator instantaneously change with the formation of every candlestick? thank you very much and ur advise will help me better understand moving average.

cheers
pipboyy

2

Yes it changes instantaneously but its called a lagging indicator because its reporting things you already know. Its based on historical prices. Its not predicting the future move. Its only showing what the stock has done in the past.

3

so there is no delay in price?

4

no. It generally includes the current price as part of the calculation for the moving average.