All language subtitles for 1. Moving Average Introduction

All right, let's talk about moving averages now, and I love moving averages.

I think they're a real powerful and pretty simple way to apply some technical analysis easily and quickly

and really get a good visual on that.

And one thing we know is that, you know, prices you could probably see from all these price charts,

they don't move in a nice straight line and they don't move real nicely.

They get all of these ups and downs and all that and kind of, you know, doing that in a moving average

helps to kind of smooth that out so we can kind of, you know, have a picture of what might be happening

with the prices in an easier to identify manner.

So in this section, we're all going to be moving averages and how we can apply them to our trading,

to our trading.

So moving averages are also known as dynamic analysis.

So if we think of what a moving average is as far as just what is it, it's a while.

I want to it's a key component of technical analysis for sure.

I mean, it's one of the things that you see often use often as a default on charts.

We see these lines going across the chart.

A lot of times those are moving average line.

Again, it's going to smooth out the pricing.

So you're not going to have that choppy up and down.

It's going to have a smooth kind of line.

It's going to kind of smooth out those pricing depending what moving average you use and it kind of

just repricing outliers where you might see prices going up and down, up and down.

So there's a big high and it comes down those big low and comes down a moving average will smooth that

out in effect and basically account for those price outliers, either high or low.

And they're also work well with using them with other indicators, whether it's candlesticks or sentiment

or volatility or momentum, whatever it might be.

There's different types of indicators out there that we're learning about.

And you can the pair well with moving averages so they can be used for these other indicators.

And they're very good at helping to identify trends and in helping it to take certain actions around.

When you see something happens with a moving average indicator, you know, what do you do next to buy?

You sell.

They actually can be very, very apparent looking at these different trends and the ways that you can

apply moving averages, which is what this section is all about.

How can we apply that?

How can we be better trading traders around them?

Now, one thing done, a couple of things to understand about moving averages was one is they are a

lagging indicator, right?

They're looking at averages going back over a certain period of time that you decide how long you want

to look back as far as that period of time.

But it is because it's looking backwards is a lagging indicator.

So it's not a forecasting type tool or trend following, too.

It's more like looking a little bit backward.

So it's a lagging indicator that can still is still very helpful as far as what you might decide to

do going forward, but it's not designed to look for it.

So and also, you don't have to try to figure out, you know, the starting endpoints of it, which

is nice.

You know, when you start looking when we're looking at, like trend lines, are we to figure out well

worth the start?

Where is the end then?

Going to draw my trend line?

You don't have to doing that.

You don't have to do any Hendron trend line drawing or anything like that.

It's all basically mathematical.

And the trading platforms do this all automatically for you.

You just set the parameters.

How many days basically you want your moving average to look at and the type of moving average you want

to use, which we're going to learn about.

And then it's all shown right on the chart and then you can make decisions based on that.

And so the subjective part is really just choosing that moving average you want to use and how many

periods the rest of it's mathematical and automatically done for you.

So let's get into that a little bit, how that would really work and some of the different types of

moving averages that are out there.

We start with the simple moving average, really the most common one.