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Moving averages clean the price data to create a trend following indicator. They don't predict price direction, but instead define the current path with a lag. Moving averages lag because they're predicated on past prices.

It is a great indicator of trend direction. Nonetheless it does give fake signals in sideways styles. There is lots of trading stratergy available with moving averages like ema crossover trading strategy, sma crossover trading strategy, supertrend with ema crossover strategy etc.

Learn more about moving average and its calculation.
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