The moving average is one of the most popular and easy-to-use tools available for doing technical analysis. It means the average price of a currency over a specified time period is used in order to spot pricing trends by flattening out large fluctuations. Moving average data is used to create charts that show whether a currency's price is trending up or down. They can be used to track daily, weekly, or monthly patterns.

Moving average are widely utilized in technical analysis, a branch of investing that seeks to know and take advantage of the worth movement patterns of securities and indices. Generally, technical analysts will use moving averages to detect whether a change in momentum is happening for a security, like if there's a sudden downward move during a security's price. Other times, they're going to use moving averages to verify their suspicions that a change could be underway. For instance, if a company's share price rises above its 200-day moving average, which may be taken as a bullish signal.

Moving averages can be used to determine the trend short term or long term

True, the moving average is used by most traders as it is easy to understand and apply. As you consider the moving average you can get a rather good idea of the price movements of a currency, and you can establish the trend both on a short term and longer term basis.

Weather they should use the EMA or the SMA. The defferences between the two are usually subtle, but the choice of the moving avarage can make a big impact on your trading.