Moving Averages Flashcards
(4 cards)
1
Q
What is a Simple Moving Average (SMA)?
A
The average of a stock’s closing prices over a specific time period.
2
Q
What is an Exponential Moving Average (EMA)?
A
A moving average that gives more weight to recent prices.
3
Q
Why is EMA preferred over SMA in trading?
A
EMA reacts faster to price changes.
4
Q
How do traders use Moving Averages?
A
To identify trends and generate Buy/Sell signals via crossovers.
