About my own experience, I strongly advise getting some education before you trade. Trading is an entirely learned skill. Having dedication for the markets is most important.
Moving averages are drawn for smoothening of the Charts. They smooth out the short- term wiggles to help the Trend make more clear. Short averages are used to measure or smooth short-term Trends and Longer averages are used to measure or smooth longer-term trends.
Moving averages may be : -
1. Simple
2. Weighted
3. Exponential
Simple Averages -------
The most basic is the Simple Moving Averages which takes the Prices from the previous user defined number of periods, sums them up and divides the summation by the number of Periods.
The average is overlaid on the Price Chart and Crossovers between the average and the underlying Prices are observed. When Prices are rising they are usually above the average. As long as Price remains above he average, there is strength in the market. When prices cross below the average it means that the market no longer expects to continue higher, at least temporarily. The more market participants taking this new view, the higher volume will be and the better signal.
Since an average smooths out of volatility, it serves as a proxy for the trend itself. Thus, along with an Up-trend, the average also turns up and vice versa. Market is strong when along with the Price Chart, average also starts rising. And the market is weak when along with the Price average starts falling.
There is no perfect number to use for a Moving average. Traders use it ranging from 5 DMA to 200 DMA and the same with weekly moving average. Its often provide support to prices in an Up-trend and resistance to prices in a down-trend. It works best should be selected by a "Trial and Error" method and depends on the time-frame you want to trend.
Sometimes, two or three or more moving averages are used for the purpose of Trading. The averages selected should depend on the time-frame of Trading. When the shorter- time moving average/averages move above the longer-term one, Traders can go along. Conversely, when the longer-term moving average goes below the Shorter-term moving average Traders can go short.
For Longer time-frame 30 DMA and 200 DMA are generally very useful.
For Intermediate trend 13, 20 and 30 DMA are great.
For Short-term trend determination, 5 DMA is excellent.
TRY IT YOURSELF.
To trade well, the correct state of mind is very important.