Those of you following my blog will know I trade CFDs and throughout 2019, I’ve been showing my progress. Although I trade with a short term view, and use technical analysis to help with my trading decisions, I do so with companies I’m familiar with, so that I can also apply some fundamentals to them. Moving averages are very useful in helping guide my trading and take profit levels.

For those of you new to trading, or new to the stock market in general, here’s a primer on what I personally feel works great for me as an indicator of the trend the stock is in, and potential buy/sell levels because they also act as levels of support/resistance.

A moving average is simply a technical indicator that aggregates and averages the stock price of any company over a designated period of time.