Moving averages are one of the most popular technical indicators used by traders to smooth out price data and identify trend direction. They work by calculating the average price of a stock over a set period. The two main types are Simple Moving Averages (SMA) and Exponential Moving Averages (EMA). SMA gives equal weight to all data points, while EMA gives more importance to recent prices. Moving averages act as dynamic support and resistance levels. When the price stays above a moving average, it signals a bullish trend; when below, a bearish trend. Crossovers of short-term and long-term moving averages are used to generate buy/sell signals, such as the famous Golden Cross or Death Cross. In this lesson, you'll learn how to use 20, 50, 100, and 200-day MAs effectively, how to choose the right type of average for your strategy, and how to combine them with other indicators like RSI or MACD for confirmation.