Chart patterns can be difficult to read given the volatility in price movements. Moving averages can help smooth out these erratic movements by removing day-to-day fluctuations and make trends easier to spot. The three most popular types of moving averages are Simple Moving Averages (SMA), Exponential Moving Averages (EMA), and Linear Weighted Moving Averages. While the calculation of these moving averages differs, they are used in the same way to help assist traders in identifying short-, medium-, and long-term price trends.