Moving Average
Moving Average Charts
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Technical AnalysisMV Volume IndicatorsAD MomentumAD IndicatorsPrice IndicatorsVolume IndicatorsOther Indicators | Technical Analysis, Studies, Indicators:Moving Averages![]() Description: lagging technical indicators, technical
analysis, basics of technical analysis, bullish and bearish trend
confirmations
Moving averages are one of the most popular indicators used in the technical analysis. Moving averages smooth out data, which is especially helpful in volatile markets. The two most popular types of moving averages are:
Price moving averages smooth out prices and make it easier to identify the trend direction. Since past price data is used to calculate moving averages, this price moving average is considered a lagging indicator, or trend following indicator. Price moving averages will not predict a change in trend, but rather follow behind the current trend and they are best suited for trend identification and trend following purposes, not for prediction.
Chart 1: Simple and Exponential Moving Averages As a rule the price moving averages are used to confirm trends, resistance and support levels as one of the components of different trading systems. It is recommended price moving averages be used in conjunction with other technical indicators. Using moving averages as part of a trading system to confirm other indicators can greatly enhance this trading system. V. K.
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