Moving Average - MA

[ProTrader]

Moving averages smooth the price data to form a trend following indicator. They do not predict price direction, but rather define the current direction with a lag. Moving averages lag because they are based on past prices. Despite this lag, moving averages help smooth price action and filter out the noise. They also form the building blocks for many other technical indicators and overlays, such as Bollinger Bands, MACD and the McClellan Oscillator. The two most popular types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). These moving averages can be used to identify the direction of the trend or define potential support and resistance levels.

Here's a chart with both an SMA and an EMA on it:
http://stockcharts.com/school/data/media/chart_school/technical_indicators_and_overlays/moving_averages/mova-1-intcexam.png

[kasual]

moving average is the most simple indicator. many trader use this indicator by put 2 moving average line and then make entry or exit based moving average crossover. MA crossover work very well in large time frame such as daily time frame while need support from other indicator when used in small time frame.

[oemata]

MA indicator is a conventional indicator admitted by many people and even the experts. It is easy to use and read its meaning for a trader to open a position, although a trader should not only use MA indicator because there are still some indicator used as the confirmation for opening a position.

[rexway]

Yes that is true the MA indicators has to use with someother trading indicator as for me I normally combine it Bollinger band for best result been known to me but you can as well chose the way which you want to be customise your own.

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Yes that is true the MA indicators has to use with someother trading indicator as for me I normally combine it Bollinger band for best result been known to me but you can as well chose the way which you want to be customise your own.