Moving averages are commonly used technical indicators that can help identify trends and support or resistance levels in financial markets. They work by smoothing price data and reducing noise, making trends and turning points easier to identify. However, moving averages also have limitations as they are lagging indicators that may result in late signals during rapid price moves.
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Moving averages are commonly used technical indicators that can help identify trends and support or resistance levels in financial markets. They work by smoothing price data and reducing noise, making trends and turning points easier to identify. However, moving averages also have limitations as they are lagging indicators that may result in late signals during rapid price moves.