Simple SMA Mobile Vs EMA Exponential Mobile Averages

Simple SMA Mobile Vs EMA Exponential Mobile Averages
When you need a moving average that responds quickly to price action, Exponential Mobile Averages (EMAs) are the best option. They can help you detect trends early, which can translate into greater benefits.

[caption id="attachment_599" align="aligncenter" width="459"] Simple SMA Mobile Vs EMA Exponential Mobile Averages[/caption]

But since the moving average responds so quickly to price, you may think that a trend is forming when it's really just price speculation.

A Simple Mobile Media fits better when you work with a longer-term trading strategy, as it responds more slowly and smoothly to the price.

Although it responds slowly to changes in price, it can save you from many false signals. The bad thing is that it can be delayed a lot and make you lose a good operation.

 

	SMA	EMA
Pros	Muestra un gráfico tranquilo que le puede eliminar muchas perspectivas equivocadas.	Se mueve rápidamente y es bueno mostrando los movimientos más recientes del precio.
Contras	Movimientos lentos que pueden causar retrasos en las señales de compra y venta.	Más probabilidad de mostrar señales falsas y de dar señales equivocadas.

So what is better? It's really a matter of each other. Many traders put different moving averages to get both results, probably use an SMA to discover a trend, and then use an EMA to find a good time to open a position.

In fact, many Forex trading strategies are built around the so-called "Moving Average Crossovers".

NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.