What are Moving Averages and how to use them to make money in stocks

Moving Average is an indicator that helps avoid the uncertain price fluctuations. It acts as an instrument to smoothen the significance of the price to determine the trend. It does lag in some cases, however, the overall scenario helps define the direction.

The prime application of Moving Average is to find the direction of the trend, but it also identifies support and resistance levels. When co-related with other technical indicators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), it provides assistance in gauging buy/sell signals.

From an arithmetic perspective, it calculates the mean of a security over