Moving Averages is a very common tool used for trading. Just like Bollinger Bands https://steemit.com/cryptocurrency/@krypto101/trading-made-simple-1-bollinger-bands they can be placed on the same chart and not only they give us indications of trend but also very important support and resistance levels.
So how do we use moving averages?
One of the most popular moving averages is SMA (Simple Moving Average). It works because a lot of people use it and respond to it. Another words flowing SMA has a big impact on the market. In my opinion moving averages are the simplest indicators to use. When the trend is up, the price bars are above the line
Now when trend is going down, then the price bars are below moving averages and line is angeling down
Pretty simple.
Happy trading!!!
