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Crypto Trading 101: Understanding Moving Averages

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theutopianlife.com

  There are a number of different versions, but they all function to help you see the movement of a coin’s trading price over time.

The average is called “moving” because the indicator line adjusts as the average coin price changes. Traders use different version for different reasons, explained below.

The three main variations of moving averages are (formulas included at the bottom):Simple Moving Average (SMA)SMA shows the average price over a set of days (eg, 7-days, 50-days, 200-days), generally based on the closing prices. Exponential Moving Average (EMA)EMA differs from SMA by including current price data.

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