Moving Average Simplified

Nothing distills the essence of supply and demand like the chart. And nothing distills the chart quite like the moving average.

Moving averages have long been used by investors and traders as an aid to analyzing price trends. Moving averages have the attribute of being able to smooth price fluctuations, making it easier to follow underlying trends with the naked eye. Used in conjunction with other technical indicators, or even with other averages, moving averages provide a reliable tool for beating the market a fair percentage of the time—once you know how to use them properly.