How to Use Moving Averages in Trading & Convergence Divergence?
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Moving Averages is another important technical indicator used by the traders while taking the buying and selling decision in stocks. From long-term trading to short-term and intraday trading , moving averages can be used to get a comparative idea about its historical price movement and latest price to decide whether to buy, sell or hold the stock. Understanding the moving averages precisely to make the right decision for trading is important to utilize the power of this technical indicator. There are different types of moving averages applied in hourly, daily, weekly and monthly charts as per the trading strategy of the trader. Thus, in this article, we will discuss about moving averages, how to use them in trading with crossover strategy and various other aspects making it easier to understand the use of this tool. What is the Moving Average Indicator? Moving average is simply a stock indicator in technical analysis , showing the a...