moving_average_stock.py

def plot_moving_average(series, window, plot_intervals=False, scale=1.96):

    rolling_mean = series.rolling(window=window).mean()
    
    plt.figure(figsize=(17,8))
    plt.title('Moving average\n window size = {}'.format(window))
    plt.plot(rolling_mean, 'g', label='Rolling mean trend')
    
    #Plot confidence intervals for smoothed values
    if plot_intervals:
        mae = mean_absolute_error(series[window:], rolling_mean[window:])
        deviation = np.std(series[window:] - rolling_mean[window:])
        lower_bound = rolling_mean - (mae + scale * deviation)
        upper_bound = rolling_mean + (mae + scale * deviation)
        plt.plot(upper_bound, 'r--', label='Upper bound / Lower bound')
        plt.plot(lower_bound, 'r--')
            
    plt.plot(series[window:], label='Actual values')
    plt.legend(loc='best')
    plt.grid(True)
    
#Smooth by the previous 5 days (by week)
plot_moving_average(data.CLOSE, 5)

#Smooth by the previous month (30 days)
plot_moving_average(data.CLOSE, 30)

#Smooth by previous quarter (90 days)
plot_moving_average(data.CLOSE, 90, plot_intervals=True)