Simple vs Exponential Moving Average; Calculation + Suitable Timeframes

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

Price trend analysis indicators like Moving Averages smooth out market fluctuations and reveal the overall price movement structure.
In this context, the Exponential Moving Average (EMA) reacts more quickly to short-term fluctuations, making it ideal for short-term strategies and scalping.
On the other hand, the Simple Moving Average (SMA) is slower in responding to price changes and is more commonly used for long-term and mid-term analyses.