<!DOCTYPE html>Moving Averages Explained — SMA vs EMA, 50 & 200 | MixFunded
MixFunded

Education · Indicators

Moving averages: SMA vs EMA, and how to actually use them.

Moving averages are the base of most trend systems. They smooth price so you can see direction. Used as a filter they help; used as a trigger in a range they bleed money.

SMA vs EMA.

  • SMA: the plain average of the last N closes. Smooth and slow.
  • EMA: weights recent closes more heavily. Faster, noisier.
  • Neither is better — pick one and test it on your market and timeframe.

Three ways traders use them.

  • Trend filter: only buy above the 200, only sell below it.
  • Pullback entries: in a trend, buy the pullback into the 20 or 50 with a rejection candle.
  • Crossovers: fast average crossing slow. Simple, but late, and choppy in ranges.

The common mistake.

When price flattens, averages flatten too and price crosses them repeatedly. A crossover system takes every one. A flat 50-period average is a sign to stand aside, not to trade more.

Risk first.

Moving-average systems have long losing streaks between trends. Risking 0.5% per trade means ten losses in a row costs 5% — inside our 8% maximum drawdown. At 2% per trade the same streak ends the account.

FAQ

Популярные вопросы.

Run your trend system for $5.

No time limit, EAs allowed, activation fee only if you pass.