1. Moving Averages: Introduction
  2. Moving Averages: What Are They?
  3. Moving Averages: How To Use Them
  4. Moving Averages: Factors To Consider
  5. Moving Averages: Strategies
  6. Moving Averages: Different Flavors
  7. Moving Averages: Conclusion


By Casey Murphy, Senior Analyst ChartAdvisor.com


Technical analysis has been around for decades and through the years, traders have seen the invention of hundreds of indicators. While some technical indicators are more popular than others, few have proved to be as objective, reliable and useful as the moving average.

Moving averages come in various forms, but their underlying purpose remains the same: to help technical traders track the trends of financial assets by smoothing out the day-to-day price fluctuations, or noise.

By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades. We hope that by the end of this tutorial you will have a clear understanding of why moving averages are important, how they are calculated and how you can incorporate them into your trading strategies.


Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

Moving Averages: What Are They?

Related Articles
  1. Trading

    Moving Averages: How To Use Them

    By Casey Murphy, Senior Analyst ChartAdvisor.com Some of the primary functions of a moving average are to identify trends and reversals, measure the strength of an asset's momentum and determine ...
  2. Trading

    Moving Averages: What Are They?

    By Casey Murphy, Senior Analyst ChartAdvisor.com Among the most popular technical indicators, moving averages are used to gauge the direction of the current trend. Every type of moving average ...
  3. Trading

    Moving Averages: Strategies

    By Casey Murphy, Senior Analyst ChartAdvisor.com Different investors use moving averages for different reasons. Some use them as their primary analytical tool, while others simply use them as ...
  4. Trading

    Exploring Oscillators and Indicators: Introduction

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Technical analysis is broken into two main categories, chart patterns and indicators. Indicators are essentially calculations ...
  5. Trading

    Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  6. Trading

    The 7 Pitfalls Of Moving Averages

    While moving averages can be a valuable tool, they are not without risk. Discover the pitalls and how to avoid them.
  7. Trading

    Do Adaptive Moving Averages Lead To Better Results?

    These complex indicators can help traders interpret trend changes, but are they too good to be true?
  8. Trading

    Exploring Oscillators and Indicators: Leading And Lagging Indicators

    By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com Indicators can be separated into two main types - leading and lagging - both differing in what they show users. Leading ...
  9. Markets

    Debunking 8 Myths About Technical Analysis

    Investopedia exposes a few common myths about technical analysis.
  10. ETFs & Mutual Funds

    Using Moving Averages to Buy ETFs

    Learn how to use moving averages to enter and exit trades in ETFs, and understand some popular technical setups using moving averages.
Trading Center