How Moving Averages Can Identify a Trade

These 3 charts help you understand how moving averages work
Moving averages are a popular tool for technical traders because they can “smooth” price fluctuations in any chart. Senior Analyst Jeffrey Kennedy gives a clear definition:
“A moving average is simply the average value of data over a specified time period, and it is used to figure out whether the price of a stock or commodity is trending up or down… one way to think of a moving average is that it’s an automated trend line.”