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The SMA Versus The EMA: Which One Is Better?
Moving averages are technical indicators used by traders and investors to define the current price direction rather than predict the price direction. The most common types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). Both SMA and EMA are used to measure the direction of price over a given period or spot any trend reversals. Simple Moving Average determines an average of price data whereas Exponential Moving Average gives more weight to recent price data. The difference between SMA and EMA becomes noticeable when comparing long-term averages. Simple Moving Average ... (full story)