If you are trying to generate good profits from trading consistently then it will be easier for you if you can follow the current market trend, one simple tool you can use are moving averages. Moving average (MA) is a lagging indicator or commonly referred to as a trend following indicator which has three types: simple moving average (SMA), exponential moving average (EMA) and weighted moving average (WMA). MA is a statistical formula that calculates the average price movements within a given period.