EMA vs. MA(SMA)

[btcb3g1nn3r]

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

[hugeblack]

The simple moving average (SMA) {average price over a certain period} and exponential moving average (EMA) {greater effect of recent prices} are the basis in forex trading and therefore the 10, 50, 100 and 200 day ranges are crucial with getting Recent data from political, economic and health news and analysis.

In Bitcoin, the impact of previous prices is less, but it is the identification of support and resistance points that gives good points for buying and selling during the average with differences that may occur randomly.


EMA can be used to set an initial stop-loss order for those who want to trade daily, but the correlation of Bitcoin with previous prices is usually after successfully identifying support and resistance points, thus increasing the gains within those points.

So in short and unlike forex trading which uses MA crossover as its basis.

Without identifying points of support and resistance, all of the above is useless

[Rehan Zakir]

Brother these are trading indicators. Ema stands for exponential moving average. And na stands for moving average. To judge the moving average of market of 14 days to take an entry in market. We use these technical indicators to judge the behavior of market for it's next move. It might be upward or downward.

[Ararbermas]

For me its the same, i mean even you used both and set  up 20-50-100-200 there's no big difference in the chart, but i don't know when it comes the higher time frame such daily and etc because as far as i know sometimes they are not accurate."correct me if i'm wrong". By the way if you want to used that on day trade, probably 20-50 moving average and 200 is enough for swing trade, if you want scalp then you need different strategy. If i were you watch some video in youtube for sure you can get more idea how to use that both moving average in a specific way.

[Charles-Tim]

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.

[adaseb]

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.

[virasog]

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

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.

[gabbie2010]

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.

[Silberman]

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.

[yhiaali3]

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.

[teosanru]

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.

[mindrust]

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.

[Woodie]

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.

[Charles-Tim]

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.

[GreatArkansas]

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.

[Mpamaegbu]

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.

[bubidan.id]

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.

[palle11]

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.

[tbct_mt2]

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.

[Charles-Tim]

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.