Moving Averages Explained: EMA vs SMA (Crypto Education)

Moving Averages help traders understand trend direction and momentum by smoothing price data.

• SMA (Simple Moving Average)

→ Smooth and slow

→ Best for identifying long-term trends

• EMA (Exponential Moving Average)

→ Reacts faster to price changes

→ Better for short-term momentum

📌 Commonly used levels in crypto:

• 20 EMA → short-term momentum

• 50 MA → trend strength

• 200 MA → long-term market bias (bull vs bear)

⚠️ Important lesson:

Moving averages follow price — they do not predict it.

✅ Best practice:

Combine EMA/SMA with:

• Trend direction

• Support & resistance

• Higher timeframes (4H / Daily)

📚 Education > Signals