Moving averages may likewise be utilized as unique indicators of areas of support and resistance. As moving averages themselves change after some time as price changes, these levels of support and resistance likewise emulate their example – similar to they're playing tag! Since these levels are changing constantly, they're 'dynamic'. We can utilize these floaters in trading. On the off chance that the trend is up, price will for the most part be over the moving average. So we buy when the price plunges and discovers support at the moving average. On the other hand, when the trend is down, you'll more often than not find that the price is beneath the average. So we sell when the price ascends to meet the resistance offered by the moving average.