What are moving averages? Moving averages are one of the most useful methods of identifying and profiting from trends by the smoothing of price data Moving averages are one of the oldest tools in technical analysis and are used in many different types of capital markets such as stock, commodity and foreign exchange markets Moving averages are a lagging indicator Why do we use moving averages? Moving averages are used to smooth price (the longer the period, the smoother the moving average will appear) Moving averages help technicians determine trend and trend changes Moving averages are used to identify support and resistance levels Moving averagesRead More →