Moving averages are a type of mathematical smoothing technique that uses a set of data points to determine the current trend of a given metric. These measurements are used in everything from financial forecasting to finding the best time to buy or sell stocks.
There are many types of moving averages, but the two most popular types are the simple and exponential moving averages. The SMA is calculated by taking the average price over a set interval, while EMA takes into account previous prices as well.
If you like smoothness, and clarity on trends also use Heiken Ashi candles
It is also important to note that;
The SMA is recommended for long periods, regardless of asset volatility. While,
The EMA is recommended for low volatility and medium volatile assets at short periods. This was pointed out from one of the materials I read from the library of forexchief, great resources there in fact!
Right! This is because EMA provides recent data and is reactive to recent changes in the price because in short term trading traders need to make quick decisions.
Whereas, SMA focuses on older data for price movement.