Moving Averages

Moving averages are exactly what they sound like - a line that represents the average trading activity within a specified time range that moves as time progresses. These lines, coupled with a candlestick chart, are great a visual aid to help you see what the market or a specific stock has been doing in the recent past. They also help you to estimate what it will do in the near future. As a swing trader, moving averages have proven to be invaluable.

I use, per Swing-Trade-Stocks.com, the 10- and the 30-day moving average along with the distant 200-day moving average. The 200-day average gives you a broad idea of where the ceiling or the floor resides while the 10- and the 30-day moving average show you very recent trends for the stock.

For a How-To on using moving averages strategically, I'd strongly recommend reading here - Swing-Trade-Stocks.com says it best.