Glossary

Moving average (SMA / EMA)

The average price over a set number of candles; SMA weights them equally, EMA gives more weight to recent prices. Used for trend direction and dynamic support/resistance.

Common periods: 20 (short), 50 (medium), 200 (long). Price above the 200-day average is taken as a general uptrend regime; 50/200 crossovers (golden/death cross) are popular in the media but lag.

Averages are lagging indicators; they often give false signals in a range. Best use is as a filter (trading only in the direction of the average) and as a trailing stop reference in trend trades.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.