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The Moving Average Indicator is one of the most popular and easy to use tools available. By using an average of prices, moving-averages smooth a data series and make it easier to spot trends.

Moving-averages are lagging indicators. They confirm that a stock trend change has occurred, but only after the fact. They also help determine if an existing trend is still in motion. They follow the trend.

They smooth out a data series and make it easier to identify the direction of the trend.

Because the stock chart moving-average is a lagging indicator, they fit the category of trend following. When prices are trending, moving-averages work well. However, when prices are not trending, they do not work so well.

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