Moving Averages1/5
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What are Moving Averages?
Price SMA
A Moving Average smooths out price data to show the overall trend direction.
SMA (Simple Moving Average): Average of the last N closing prices. SMA 20 = average of last 20 closes.
EMA (Exponential Moving Average): Gives more weight to recent prices, making it more responsive to new data.
When price is ABOVE the MA uptrend. When BELOW downtrend.
Key termsSMAEMAtrend