investing guide

Moving Averages Of Stocks

moving average

Moving averages of stocks are one of the simplest forms of technical analysis. In my opinion, moving averages are one of the best ways to predict the future direction of a stock price.

A moving average is simply an average of a stock price for a specific period of time. You can set up different time frames for moving averages on stock charts, and see how the price of a stock is moving and in what direction. Many investors simply base their trading on a stock price that falls above or below a certain moving average.

You can see how investors would use moving averages at This website will show you how a typical swing trader uses moving averages to predict the movement of a stock price.

Remember no signal indicator can ever predict the movement of a stock price 100% of the time.