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# Exponential Moving Average versus Simple Moving Average:

Exponential Moving Average (EMA) & Simple Moving Average (SMA) are same in that they are both measuring trends. The two averages also same because they are interpreted in the same manner and are both commonly used by technical traders to smooth out price fluctuations.

There many differences between the two measurements, however. The primary difference between an exponential moving average and and simple moving average is the sensitivity each one shows to changes in the data used in its calculation.

Simple moving average is calculates the average of price data, while exponential moving average gives most weightage to current data. The letest price data will affect the moving average more, with older price data having a less affect.

I trying to say that the exponential moving (EMA) average gives a MORE weighting to Letest prices, while the simple moving average (SMA) gives equally weighting to all price values.

## Exponential Moving Average

Since Exponential moving average place a more weightage on letest price data than on older price data, they most active and reactive to the current price changes than simple moving averages, which makes the conclusion from EMAs most time and explains why the exponential moving averages is the prefer trader with a short time view may not care about which moving average is use, Because the difference between the two averages is usually only a percent. On the other hand, traders have long time view should give more value to the moving average they use because the values can different by few rupees, Which is sufficient for the difference in price to prove effective on the return received in the end. Especially when you are buying and selling large quantities of stock.

Like all technical indicators, there is no average type that a trader can use to guarantee success.

## Simple Moving Average

The SMA (simple moving average) is the more common type of moving average used by technical analysts and most of trader, SMA is calculated by the total sum of price devide by numbers in series. For example, The seven-period moving average can be deduced by adding the following seven values ​​together and dividing the result by seven. (The result is also known as arithmetic mean).

Moving averages are fundamental to many technical analysis strategies for trading, but professional traders use a combination of techniques.

• The exponential moving average(EMA) giving more weightage to letest prices.
• The (SMA) simple moving average gives an same weightage to all price values.
• Like all technical indicators, there is no average type that a trader can use to guarantee success.