Moving Averages: Trend Context Without the Guesswork

Moving averages smooth price data to help traders identify the general direction of a market.

A rising moving average can indicate an upward trend in the selected timeframe. A falling one can indicate a downward trend.

But moving averages are lagging indicators. They react to past prices rather than predicting future prices.

For NQ, I prefer to use them as context rather than treating every crossover as a trade signal.

A simple indicator can be useful when it supports a clear plan instead of replacing one.