They show you an overall trend within a time frame. Godfather moving averages are the 50-period moving average and the 200-period moving average, at least from my understanding. If you use multiple moving averages you're able to really see what the price "wants" to do. They can also serve as support and resistance. I personally use three moving averages, 8, 50, and 200-period. The larger period moving averages allow you to see the overall trend, while the smaller period moving averages allow yo

It's a basic indicator that tells you short term trends. I would focus only on 50 and especially 200 only if you like indicators. I would not use it for entries. Don't look for crosses since they are lagging. They are good for targets and tell you where beginner traders are located. If you want to understand things better, you must learn how to use volume based indicators (leading indicator) and divergences (hiding buying/selling) to see the bigger picture.

Note also there are discretionary traders who don't use indicators and make decisions based on experience and mood. Then there are system (or mechanical) traders who may use complex rules, indicators, and black box systems. It's based on your personality. You have to find what you like. That's why some of the gurus do not use indicators.