Moving averages are one of the most famous tools and also the easisest tool used by many traders.We can find many types of moving averages .the 2 most popular types are: Simple Moving Average and Exponential Moving Average.• The simple form of moving average (SMA) will be the simple moving average, is formed by computing the average = price of a security over a number of periods• Exponential moving averages: EMA’s reduce the lag by applying more weight to recent prices relative to older prices.• The best way to use moving averages is to plot different types on a chart so that you can see both long term movement and short term movement.
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