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The simple or the exponential moving average?

shanhasaranga

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When you want a moving average that will respond to the price action rather quickly, then a short period EMA is the best way to go.


These can help you catch trends very early (more on this later), which will result in higher profit. In fact, the earlier you catch a trend, the longer you can ride it and rake in those profits
 
EMA gives more weight to current data than SMA, which calculates the average of price data. An exponential moving average gives a higher weighting to recent prices, whereas a simple moving average gives equal weighting to all values.
 

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