Technical Analysis

Moving Averages

Make the moving average your primary trend tool — SMA vs EMA, the periods that matter, golden and death crosses, dynamic support and resistance, and ribbons. Read trend direction and strength at a glance.

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StartLesson 1 · SMA — Construction & Meaning

What you’ll leave with10 lessons · 9-line playbook

A moving average is the average of the last few closes. Read its slope for the trend, and expect it to turn after price does.
An EMA counts the newest closes most, so it turns sooner than an SMA. It also flips more often when the market chops.
A short average hugs price and whips. A long one lags but holds the big trend. Pick the period for the job.
Fast over slow is a golden cross; fast under slow is a death cross. Both confirm a turn late, and both fail in ranges.
A rising average is support and a falling one is resistance until a body closes through. Your stop goes just past the pullback.
Read a ribbon by its order: fastest on top is up, fastest at the bottom is down. A tangle has no side to trade.
Call the trend from three checks: where price sits, which way the 50 and the 200 slope, and which is on top. In a trend all three agree.
Wide separation, a steep slope and a wide ribbon mean a strong trend. A closing gap or a squeezing ribbon means it is weakening.
Trade the way the averages point: buy the dip to a rising 20, sell the rally to a falling one. Stop just past the pullback, target the last swing.

Moving Averages

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