How to Use Simple and Exponential Moving Average

What is a Moving Average?

Moving averages are trending indicators and are widely used because of their simplicity and effectiveness.They do not foresee price direction, yet rather define the current direction, though they lag due to being based on past prices.

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Lagging Indicators – Types of Indicators – Part 1

Indicators signify a statistical method of technical analysis as opposed to a subjective approach. By looking at money flow, trends, volatility, and momentum, they provide a secondary measure to actual price movements and help traders confirm the quality of chart patterns or form their own buy or sell signals.

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