What are moving averages in stock market?
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In the share market, moving averages are technical indicators that investors and market analysts use to determine the direction of a trend. A moving average allows technical traders to generate various trading signals. Analysts use the moving averages to examine an asset’s support and resistance ratios and evaluate its price movements. It helps them determine the potential price direction of an asset and trails the action price of the asset to demonstrate the direction of a given trend.