MA, SMA, EMA: What are the differences between these three indicators?

The three concepts that are most confusing when doing Technical Analysis are these. Let me explain them to you plainly 👇

MA (Moving Average) Category nouns, including all moving averages, used to smooth price fluctuations to see trends clearly.

SMA (Simple Moving Average) Simple Moving Average. The algorithm is straightforward: add the closing prices of N days and divide by N. The weight is the same every day, so it reacts slowly, making it suitable for observing long-term trends.

EMA (Exponential Moving Average) Exponential Moving Average. It's a sibling of SMA, but EMA gives more weight to recent prices, responding much faster to market changes. This is also why short-term traders prefer to use it—they can quickly catch bottoms and escape tops.

How to use? The combination of EMA + SMA is the best:

• SMA determines the overall direction (long-term trend)
• EMA Find Entry Points (Short-term Fluctuations)

One slow and one fast, complementing each other is the way to go.