Moving averages (MA) are used to smooth out price action (noise), this way they eliminate short term price movement that can cloud the overall trend. There are many combinations of moving averages across different time frames, crossovers can be used as directional signals. MA is not good in sideway markets. There are distinct types of MA:

SIMPLE	Each data point has the same weight i.e. 10-day MA of the close would be measured by summing the last 10 days of closing prices and dividing by 10, each closing point has the same effect on the average.
WEIGHTED	Can be either geometric or exponential. It aims to iron out the criticisms of simple MA. The data given is more recent.
EXPONENTIALLY WEIGHTED	Uses all the available data with heaviest weight on current data.

Crossovers in MA analysis can be bearish (‘dead’ crossover) or bullish (‘golden’ crossover).
If you do use MA It is important to find the right average for the market you trade. Experimenting helps!

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