Moving Average

A moving average (MA) is a widely used technical analysis indicator that smooths out price data by calculating the average price over a specific number of periods. The two most common types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). Traders use moving averages to identify trends, support and resistance levels, and potential buy/sell signals. Patterns like the golden cross and death cross are based on moving average crossovers.