EMA and SMA
Averaged price, smoothed
What it is
A simple moving average takes the mean close over N periods. An exponential one weights recent periods more heavily, so it turns faster.
What it may suggest
Direction and slope give a rough trend read, and averages often act as dynamic support or resistance. Crossings between two are used as a trend-change marker.
Where it fails
Every moving average is a lagging summary of price. Crossovers arrive after the move, and in sideways conditions they whipsaw.
Also called moving average, sma, 20 ema, 50 sma, 200 sma, golden cross.
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