⚔️ SMA or EMA — Which is better for your organization?
Many traders use the wrong type for their strategy!
👉 Learn the difference now and enter the market with confidence and professionalism 🔥
Welcome to episode six of:
"Understand indicators like a professional" 🔍
And today we compare: SMA (simple) and EMA (exponential)
📌 What are moving averages?
Moving averages smooth the price movement over a certain period.
But the smoothing method differs:
SMA = Simple average of prices
EMA = Gives more weight to recent prices
📊 The basic differences:
✅ SMA = Slower but more stable
Excellent for seeing the overall trend
Reduces noise but may lag in response sometimes
✅ EMA = Faster and more sensitive
Ideal for detecting rapid shifts in trend
It responds quickly to movement (suitable for intraday trading and scalping)
📈 When to use each type?
🔹 Use SMA when:
Do you want a clear view of the long trend?
You trade spot or swing trades
🔹 Use EMA when:
You trade short-term movements
You need quick entry/exit signals
💡 Many professionals use both together:
Example: EMA 9 + SMA 200 to identify short and long trends
📌 Next episode: Death Cross and Golden Cross — Signals that shake the market ⚡️
Follow me now to be the first to discover major trend shifts!