🔥 Candlestick Structure and Fundamentals | Candlestick patterns | Trading charts | Candlesticks 🔥 $JTO $HOT $ID 📈 EMA and SMA: Which Type of Moving Average Is Better for Trading? 🚀 Looking to enhance your trading strategy? Hey! Let’s dive in at them two of the most important(read: most used) TA (technical analysis) tools; the EMA (exponential moving average) and the SMA(simple moving average)! 💹 🟢Definition What is an EMA? An Exponential Moving Average (EMA) is a type of moving average that gives more weight to recent prices and is therefore more responsive to new information. ✅ Benefits: • Reacts more quickly to a change in trend. • Perfectly suited for short term traders riding those quick moves. ⚠️ Cons: • May give false signals during high volatility periods. 📊 Usage Example Use an Exponential Moving Average (EMA) (e.g., 12-day, 26-day) for finding your entry/exit points in a trend environment. 🔵What is an SMA? The Simple Moving Average (“SMA”) is a widely used indicator in technical analysis that calculates the average of a selected range of prices, by the number of periods in that range. ✅ Advantages: • Awesome for filtering out market noise. • Good for spotting long term trends. ⚠️ Cons: • EMA is more reactive to price changes than SMA. 📊 Application: Long-term traders are often seen employing the 50 day and the 200 day SMA for different systems such as the Golden Cross (the 50 day sma crossing the 200 day from beneath) for …