The question is always which MA to use when trading. One of the differences, as has been said, is that the EMA gives weight to recent prices. The EMA is moving faster it On the other hand, the SMA will need more time to recognize the changing trend.
However, this means that the EMA will be more outspoken in giving the wrong signals that may occur. It will show them too early, and the possibility of error occurs much faster. Thus, while the EMA immediately follows the reversal of the trend, the SMA moves more slowly. It means that the SMA lasts longer in the game, and this is significant, especially when there is a short-term unpredictable price movement.
However, this means that the EMA will be more outspoken in giving the wrong signals that may occur. It will show them too early, and the possibility of error occurs much faster. Thus, while the EMA immediately follows the reversal of the trend, the SMA moves more slowly. It means that the SMA lasts longer in the game, and this is significant, especially when there is a short-term unpredictable price movement.
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