I mainly use EMAs and not MAs. The EMA is fairer and averaged compared to regular MAs. It's more biased when it's just MA, and EMA would make it closer to each other (if you are using two moving averages, whether exponential or not).
The critical value of the MAs that you will use should be that there's a slow one and a fast one. Like 9 and 20. It would be calculated, and it would depend on how you interpret the graph's current setup.
There's nothing and no indication of whether you would use EMA for BTC and another for alts. It gives the same purpose so that it wouldn't be much different.
Topic: EMA vs. MA(SMA) (Read 185 times)
if we look at the outline of the two, it just depends on what we need and may match what we want.
- EMA will catch the trend early. The earlier you catch a trend signal, the longer you follow the trend and the greater the profit opportunity. but it will always happen that the weakness of EMA is the possibility of being deceived by signals during periods of consolidation. EMA responds to prices very quickly, so it could happen that you think a trend is forming, but in reality it could just be a price spike. This would be a case of too soon an indicator for your own good.
- SMA will operate well when looking at the price for the long term, because it can give a picture of the overall trend.
Even though SMA is slow to respond to price action, it will avoid false signals.
The downside of the SMA is that it may delay the trend projection for too long and you may miss the best entry points.
Once again, look for the one that is more suitable for what you want.
*) taken from several news sources
- EMA will catch the trend early. The earlier you catch a trend signal, the longer you follow the trend and the greater the profit opportunity. but it will always happen that the weakness of EMA is the possibility of being deceived by signals during periods of consolidation. EMA responds to prices very quickly, so it could happen that you think a trend is forming, but in reality it could just be a price spike. This would be a case of too soon an indicator for your own good.
- SMA will operate well when looking at the price for the long term, because it can give a picture of the overall trend.
Even though SMA is slow to respond to price action, it will avoid false signals.
The downside of the SMA is that it may delay the trend projection for too long and you may miss the best entry points.
Once again, look for the one that is more suitable for what you want.
*) taken from several news sources
When you are trading, specifically trading daily, using as many indicators as possible could both help you but also confuse you at the same time. It would sometimes show the same thing, which makes you believe that you are looking at the right thing, but sometimes will show vastly different things in which case you would have to realize there must be something wrong with it.
All in all, I would say that it is really not that difficult to use EMA, so I would go with that if I had to pick one of these, I wouldn't be 100% certain and sure about my decision and think it is guaranteed success, but it certainly is fairly easier to learn how to use EMA than any other indicator.
All in all, I would say that it is really not that difficult to use EMA, so I would go with that if I had to pick one of these, I wouldn't be 100% certain and sure about my decision and think it is guaranteed success, but it certainly is fairly easier to learn how to use EMA than any other indicator.
OP, if you are an active day-trader who use shorter time frames, EMA might be better because it is weighted more towards recent price data, but for longer time frames, like weekly charts, I believe it doesn't actually matter anymore. I personally use SMA for my weekly chart.
You can use them for investment perspective but not for trading perspective. Because these indicators are late to reflect market movements so if you depend on them for your decisions, you will make your decisions too late than what the market moves.
Then what trading indocator should be used for trading? In my opinion, holders do not need any indicator at all, ones they are following the price movement or check back the price history of some months ago. Anyone that want to hold for long also consider many other factors like percentage decrease or increase. Traders need indicators not holders. Relative moving average can be good for long term trading like swing trading while exponential moving average can be used mostly by day traders, but both are still often used by short term traders.
You can use them for investment perspective but not for trading perspective. Because these indicators are late to reflect market movements so if you depend on them for your decisions, you will make your decisions too late than what the market moves.
When you buy, price already goes up a lot.
When you sell or cut loss, price already goes down too much.
When you buy, price already goes up a lot.
When you sell or cut loss, price already goes down too much.
What I understand with moving average whether SMA or EMA is that they are best combined with RSI. So about the times frame they are stronger in higher time frame. It is used for swing trade because of it stronger ability in higher time frame a day time trading above. Sometimes you can use it for trend location for a swing trader.
If I usually use the EMA, because it is more accurate and more aggressive for indicator movements, the SMA is simpler and more smooth. I usually use the EMA period 20,50,200, EMA 20 and 50 as support and 200 to see the direction of the current trend. if the price is above the 200 EMA then the current trend is bull, so we are looking for an area for buy entry and vice versa.
First off, you've to understand that whether EMA or SMA; both are "Lagging Indicators" and as such they only react after price and not before price. They only take decisions and directions after price has gone through. It's the opposite of what Pivot Points, Support and Resistance, and Trendlines do. The latter get there before price and the trader is already aware of what is expected when price hits them. On few occasions, I've used SMA and that's on the higher timeframe of 4hrs/Daily and on the 200 setting. I used it to gauge trend. That's, change in trend. Since it's a lagging Indi, it has its shortcomings because it doesn't always show accuracy. BTW, the SMA setting of 25 is the same thing as Bollinger Band of 25/2.0. So, you see that most of these indicators are related and that's why I don't use any in its default state. If you must use MAs, I advise you choose higher timeframes so as to sieve out the noise.
EMA for me, but to be honest these two indicators are for moving averages, there is just a small difference for them. As I saw also on some traders, the most common indicator for moving average is EMA (Exponential Moving Average).
Overall, this is just an indicator, which will help you to decide and analyze the chart, it's like an ad-on for me because there are also a lot of things to consider just like @hugeblack said (Support and Resistance) which is I agree, I also want to add the volume and momentum.
But since we are talking the moving average, support and resistance is much relevant.
Overall, this is just an indicator, which will help you to decide and analyze the chart, it's like an ad-on for me because there are also a lot of things to consider just like @hugeblack said (Support and Resistance) which is I agree, I also want to add the volume and momentum.
But since we are talking the moving average, support and resistance is much relevant.
exponential moving averages have always been better when compared to the moving average and in some cases act as support and resistance when applied .
As explained above, EMA is often prefer by short term traders as it gives more weight to recent prices. So, very possible you are short term trader. But for long term trades, MA would be preferable. Even for short term, MA and EMA almost have similar results. 
exponential moving averages have always been better when compared to the moving average and in some cases act as support and resistance when applied .
I also think EMA 200 and 30 for me did wonders when i still used indicators but after learning other ways of trading my charts look cleaner and easier to anticipate the move. But all in all its all about mastering the trading tools to excute high probable trades.
I also think EMA 200 and 30 for me did wonders when i still used indicators but after learning other ways of trading my charts look cleaner and easier to anticipate the move. But all in all its all about mastering the trading tools to excute high probable trades.
They are pretty much the same thing. The difference is minimal. They are lagging indicators so it doesn't really show you anything. (Like most of TA) Making trades based on those lines is a mistake imo. By the time those crosses (golden or death) happened, the action was usually over. I use whatever is available. I guess it is the EMA for me nowadays.
Hi,
Which actual values you're using for EMAs/MAs?
Why using one and not the other?
What fits best for 1m, 15m, 1hr, 4hr, 1D trading charts?
What fits best for BTC and what for alts?
thank you
I prefer keeping both on my chart, but generally, I have seen it respecting MAs more than EMAs, scientifically EMAs make more sense to me but on charts, you will always see MAs getting much more respect than EMAs. I am talking especially about the longer time frame candles, like the daily or the 4h candles, shorter candles can be dynamic, sometimes you will see them respecting MAs other time you will see them respecting EMAs, but in shorter time frames both these things don't have a lot of difference, so I just create a sort of range and try to keep that range as my Moving average because ultimately you are not sure which point it will bounce back from. Which actual values you're using for EMAs/MAs?
Why using one and not the other?
What fits best for 1m, 15m, 1hr, 4hr, 1D trading charts?
What fits best for BTC and what for alts?
thank you
Of course, SMA and EMA can be used together at the same time, but this depends on the type of trader, is he doing day trading or in the long term, it also depends on the type of coin that you are trading on, is it highly volatile or somewhat stable, usually using EMA is especially used by traders who use short term trading because it gives price reversals faster than SMA so it is better in the short term, while SMA is used by long term traders.
For me I use both types as I trade some coins in the long term because their volatility is slow, and in some other coins I use the short term because their volatility is big.
For me I use both types as I trade some coins in the long term because their volatility is slow, and in some other coins I use the short term because their volatility is big.
Hi,
Which actual values you're using for EMAs/MAs?
Why using one and not the other?
What fits best for 1m, 15m, 1hr, 4hr, 1D trading charts?
What fits best for BTC and what for alts?
thank you
When it comes to fitting the charts without a doubt the best is EMA, MA is just an average as its name implies of a certain number of periods, however the EMA gives greater weight to the last periods and as such it more closely approximates the charts, and about what values to use for the number of periods to watch the truth is that it does not matter, you can use almost any value and if your strategy is solid it would still produce profits. Which actual values you're using for EMAs/MAs?
Why using one and not the other?
What fits best for 1m, 15m, 1hr, 4hr, 1D trading charts?
What fits best for BTC and what for alts?
thank you
I use double simple moving average (SMA) with different settings in form of a channel, usually price must stay within the channel using 4 hours chart and above of course higher timeframe has a stable movement while watching for price breakout out from the channel thereafter wait for a pullback, after a price action is set up I pull my trigger, I also use 200 EMA for trend direction, both indicators are very useful if fully utilize with price action and candlestick patterns and also taking advantage of price volatility and momentum.
Hi,
Which actual values you're using for EMAs/MAs?
Why using one and not the other?
What fits best for 1m, 15m, 1hr, 4hr, 1D trading charts?
What fits best for BTC and what for alts?
thank you
Which actual values you're using for EMAs/MAs?
Why using one and not the other?
What fits best for 1m, 15m, 1hr, 4hr, 1D trading charts?
What fits best for BTC and what for alts?
thank you
Who do trading on a 1 minute chart. I dont think EMA or MA would have any effect if you apply them on a one minute chart. I prefer to trade on 4 hours chart and i use EMA for most of my trades. EMA are more relevant as they take into account the recent data that matters the most in crypto trading.
Basically most people use the regular MA without the EMA. However keep in mind that they usually only work well in trending markets. So if you used them when it’s ranging or trading sideways you are just going to run into many losses.
The higher the timeframe the higher the probability that the MA will work. A very popular one in Bitcoin is the 200WMA which is the 200MA for the weekly.
If you plot it you can see that price never closed below this MA. A great area to long Bitcoin.
The higher the timeframe the higher the probability that the MA will work. A very popular one in Bitcoin is the 200WMA which is the 200MA for the weekly.
If you plot it you can see that price never closed below this MA. A great area to long Bitcoin.
Using relative moving average or exponential moving average depends on the trader. Long term traders prefer RMA while short term traders will prefer to use both RMA or EMA. SMA are most commly used but there are when EMA should be used as it gives more weight to recent prices which can make it better to be used by short term traders. In short term, the two averages are almost alike but although calculated differently. But in long term, the two moving averages are not alike like in short term, there may be a huge difference in the averages in long term.
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