#TradingTools101 The EMA (Exponential Moving Average) is a popular technical indicator in crypto trading, as it reacts more quickly to price changes than the simple moving average (SMA). To use it, one chooses a period (for example, 20 or 50 days) according to the desired trading horizon. A short EMA (e.g., 9 or 12 days) helps to identify short-term trends, while a long EMA (e.g., 50 or 200 days) shows the overall trend.

Traders use the EMA to detect buy or sell signals. For example, when a short EMA crosses a long EMA upwards, it may indicate a buy signal (bullish crossover). Conversely, a downward crossover may indicate a sell signal. The EMA can also serve as dynamic support or resistance.