A moving average is one of the single most widely used technical indicators used by the traders. Using one or many moving averages is dependent on the trading strategy of the technical trader. An easy moving average trading strategy could be like buying security as long as the exponential average price of 50-period is up and sell as long as the exponential average price of 50-period is down.
Another most widely employed indicator is Moving Avg. Crossovers. The crossover trading strategy is to buy when the 10-period moving average crossover 50-period average.
The high the moving average is, the high the price movement of a security is to be predicted. For instance, price range crossing higher or lower of 100 or 200 periods is considered more significant than of a price range crossing higher or lower of or 10 periods.
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