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Trading Tutorials· ·19 min

Moving Averages Explained: SMA vs EMA and What Crossovers Mean

A moving average is just the average price of the last N candles, redrawn each period. That simplicity is its strength and its limit: it smooths noise, but it can only describe what already happened. Here is what SMA and EMA actually do, and why a golden cross is a summary rather than a signal.