The moving average indicator is a dynamic average of a dataset of prices over a specified length (period of analysis). We interpret it as a dynamic support/resistance line. In technical analysis, a support line is a region where sellers of a stock are outpaced by the buyers; thus, the price is supported and cannot go lower. On the contrary, a resistance line is a region where buyers are outpaced by sellers. Too much selling pressure does not allow the price to go up further.
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