Moving Averages
Use MAs as dynamic support/resistance and trend filters
4 sections · 3 quiz questions · ~5 min read
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Closest track: Technical Analysis + Price ActionFirst lesson: The top-down framework
Simple Moving Average (SMA)
The SMA calculates the average closing price over N periods. The 20 SMA shows the average of the last 20 candles. It smooths out noise and shows the underlying trend direction. Price above the SMA = bullish bias.
Exponential Moving Average (EMA)
The EMA gives more weight to recent prices, making it faster to react. The 20 EMA is popular for short-term trends. The 50 and 200 EMAs are watched by institutional traders for major trend direction.
Golden & Death Cross
When the 50 MA crosses above the 200 MA, it's a Golden Cross (bullish). When the 50 crosses below the 200, it's a Death Cross (bearish). These are significant signals watched by the entire market.
Dynamic Support & Resistance
Moving averages act as dynamic S/R levels that move with price. In a strong uptrend, the 20 EMA often acts as support — price bounces off it repeatedly. Use MA bounces as entry opportunities in trending markets.
Quick check
Did it stick?
Try to answer each one before you peek at the explanation.
1
What is a "Golden Cross"?
2
An EMA reacts slower to price changes than an SMA of the same period.
3
In a strong uptrend, which MA commonly acts as dynamic support?