A moving average (MA) is one of the most basic technical indicators and is an average of a predetermined number of prices such as the closing prices calculated over a number of periods like 100 candles. The higher the number of candles in the average, the smoother the moving average line is. The lower the number of candles in the candle, the choppier it is.

Moving averages are of two types: Simple Moving Averages (SMAs) and Exponential Moving Averages (EMAs). SMA is only an average obtained by adding all the candles that you would like to measure. The EMA responds more quickly to price changes as compared to SMA because it pays more attention to newer candles.

Instead of watching the up and down behavior of each candle you are watching the relatively smooth moving average line. A MA makes it easier to visualize price action without statistical noise.

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The downturn is in full swing in the global arena and its lethal consequences have been witnessed in different sectors of society, especially financial, already. For this reason almost each and every individual is in search of more money (in order to maintain a healthy livelihood). Well, lots of companies have shut down by now and employees are afraid of layoffs. This indicates that job industry is also staggering on account of the brunt of recession. What can you do in this period? Are you thinking of starting a new business? If you are serious, let me say several tycoons have become belly-up and you may be the next one.

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