A market move accompanied by increasing volume is generally more likely to continue in the same direction, whereas a move accompanied by decreasing volume is less likely to continue. Decreasing volume indicates decreasing participation among investors and a general lack of conviction, which often precedes a change in trend. In addition, a significant decline in volume for an extended period is characteristic of a bear market. The Moving Average line indicator is perhaps the most widely used technical indicator in existence. It is a simple moving average of prices over a specified length of time.
Many analysts use the moving average in order to determine the direction of the trend.
The average is calculated by adding all the prices in the past and then dividing the sum by that length. One moving average is often used to identify the trend of a market. It can be used in conjunction with other averages in order to generate buy and sell signals when the averages cross. For example, you may only want to take long trades when the average is moving in an upward direction, or when price is above the moving average.