Moving Average

Moving Average

Moving averages are an extremely popular and useful charting tool which many traders continue to focus on when trying to determine direction over a period of time. However, this is one of the simpler tools in a technical analysts tool box and is often used alongside other measures and/or to back up or support arguments for a particular direction in the markets. Knowing their relevance and function is however, a good basis in understanding how technical analysis works, with moving averages forming the basis for other measures, such as the MACD.

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