The moving average (MA) is a popular technical analysis tool used in trading to smooth out price data over a specified period, helping to identify trends by filtering out noise from random price fluctuations. Common types include the simple moving average (SMA), which calculates the average price over a set number of periods, and the exponential moving average (EMA), which gives more weight to recent prices and reacts more quickly to price changes. Traders often use moving averages to identify support and resistance levels, generate buy or sell signals, and confirm trends, making them an essential component of many trading strategies.