MOVING AVERAGE _ MA is a trend following/lagging indicator based on the average closing prices of the stock This is called simple moving average
The most common applications are
(a)TO identify the trend direction
(b)To find the support and resistance levels
FOR short term trader 21 DMA is enough where as for long term trader 200 DMA is required since MAs lag current price the longer the time the greater the degree of lag( ie 200 DMA will have more degree of lag than 21 DMA)
Moving average is a trending indicator. When the price moves above the moving average the trend is bullish and when it moves below moving average then the trend is bearish.
A moving average (MA) is a stock indicator that is commonly used in technical analysis. The reason for calculating the moving average of a stock is to help smooth out the price data over a specified period of time by creating a constantly updated average price.