Moving Averages in Forex: SMA vs. EMA and How Crossovers Work
A moving average smooths price data by averaging closing prices over a set number of periods. The simple moving average (SMA) weights every period equally, while the exponential moving average (EMA) gives more weight to recent prices, so it reacts faster. Crossovers between a fast and a slow average are a common way to describe changing trends, but every moving average lags price and can produce false signals in sideways markets.