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What are moving averages in technical analysis?

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Professional Stocks and Forex trader with 4 years of experience.

Moving averages in technical analysis are indicators that smooth out price data to identify trends over a specified period. They average out past price movements, providing a clearer picture of the underlying trend. Common types include the simple moving average (SMA) and the exponential moving average...
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Moving averages in technical analysis are indicators that smooth out price data to identify trends over a specified period. They average out past price movements, providing a clearer picture of the underlying trend. Common types include the simple moving average (SMA) and the exponential moving average (EMA). Traders use these averages to spot trend direction, support and resistance levels, and potential entry or exit points in the market.

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