1. SMA: Simple Moving Average
A simple moving average is the arithmetic average of closing prices over a period. A 20 SMA averages the latest 20 candles.
2. EMA: Exponential Moving Average
An exponential moving average assigns greater weight to recent data, making it more responsive to price changes.
3. Main differences
📊 SMA and EMA
SMA: Equal weighting → slower reaction → fewer false signals in the source's comparison → longer trends.
EMA: More recent weighting → faster reaction → more false signals → shorter-term trading.
4. Which one fits the use case?
- Scalping and day trading: The source favors EMA for faster reactions.
- Swing trading: EMA or a combination with SMA.
- Long-term investing: SMA, especially the 200 SMA.
- Golden and death crosses: The 50 SMA and 200 SMA.
5. Common moving-average periods
📊 Widely watched averages
9 and 21 EMA: Short-term trends and scalping.
50 SMA or EMA: Medium-term trends.
200 SMA: Long-term trends, called the “king of moving averages” by the source.
Price above 200 SMA = bullish; below = bearish in this framework.
6. AI moving-average analysis
The source describes NOONOO TRADING as analyzing multiple moving-average periods simultaneously to identify the trend.
🃏 AI with multiple indicators
View results from AI that analyzes several moving averages together.
Start in the bot