There are three types of moving averages. In case of weighted and exponential moving averages, more weight is given to the recent prices as compared to the old ones making them more responsive to recent price action as compared to the simple moving averages. Simple averages are calculated by dividing all the prices with the number of time periods used to calculate the average.

On the other hand, longer time period averages move slowly with a smoother curve that can be slow in giving trading signals for entering into a long or short position. Now many traders use a combination of slow and fast moving averages in generating trading signals.

Most traders use the combination of three averages. When the short period average crosses the medium one, this gives a trading signal but this need to be confirmed. Confirmation is obtained when the short and the medium move above the longer period average. Futures traders use the combination like 4,9 and 18 period averages. Stock traders use longer periods like the 40 day, 100 day and 200 day to generate trading signals.

Now next to trendlines, moving averages are the most widely used technical indicators. So when using moving average crossovers, when the short period average is above the long period average, you should be long. Similarly when the short period average is below the long period average, you should be short.

The crossovers of these short and longer averages provide the trading signal to act as they indicate that the momentum is shifting from one direction to another. Moving average crossovers are an important tool in the arsenal of any trader. Moving Average Convergence Divergence (MACD) one of the most popular indicator depends on them.

However, when trading with these crossovers, you should know this that these averages are lagging indicators. What this means is that they are giving a signal about the past price action something that has already taken place. These averages work very well in a trending market but do not work well in non trending or choppy markets.

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Now, in the decade between 1970 and 1980, gold and silver both had seen an unprecedented bull market. Gold prices rose from $35 per ounce to $850 per ounce during that period of ten years. This was an increase of 2,329%. Not bad huh! Many investors who had invested in gold in those days, still remember those days with nostalgia.

During the same decade between 1970 and 1980, silver prices rose from $1.5 per ounce to almost $50 per ounce. This was an increase of 3,233%.Right now, silver prices are hovering in the range of $17 per ounce. Just imagine, silver prices skyrocketing to around $400 per ounce in the next few months. This will be an unprecedented gain of over 2,000%. So don’t miss this chance of investing in silver right now!

Now, industrial applications of silver are much wider as compared to gold. As the global economy comes out of the recession finally in this year and starts to expand again, you will see a huge rise in the demand of silver.

The most important application of silver is as an electricity conductor. Silver wires are used as high tension cables. You will be surprised to know that silver is also used in a number of household appliances like refrigerators, washing machines, wall switches, fuses and so on.

Silver is used extensively in photography. This use might decrease as digital photography replaces traditional photography. But this will be replaced by new uses of silver in other industries.

Now, take a look at your computer, every computer, server, monitor, cell phone and switch has silver. Lasers, satellites, high-tech weaponry and robotics, all require silver. Digital technology and telecommunications need silver.

Double Layer of silver on a glass in a window shields the house from almost 95% of sun rays during summers. Silver is used widely in the glass and window making industry.

Silver achieves the most brilliant polish of any metal and is the best reflector of light, allowing it to be used in mirrors and in coatings for glass, cellophane or metals. Chemical reactions can be significantly increased by adding silver. Approximately 700 tons of silver are in continuous use in the world’s chemical industry for the production of plastics.

So, you can well imagine as the global economy starts to expand again and the demand for these products and services increase, you will see a skyrocketing of silver prices.

Mr. Ahmad Hassam has done Masters from Harvard University. Read this shocking 40 page Gold And Silver Investing FREE Report. Discover Forex Brilliance and download the powerful Mutil-Timeframe Trend Dash Board FREE just now!

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