
Moving Averages: Introduction
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 daytoday 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.
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