Moving Averages - A Simple or Complex Indicator

Once a trader has calculated one or more moving averages for a security, a trader can use it for a wide range of purposes. Many investors utilise these indicators to determine what trend a security is following.
Investors should keep in mind that whether a security is rising or falling in value, there are many different ways they can try to generate returns from either its rise or descent. For example, as long as assets are climbing in value, investors can simply buy them and obtain profits. They can also generate returns from depreciating securities through strategies such as shorting.