STOCK TRADING 101: PART E
CHART INDICATORS WITH PURPOSE AND USE
1. Moving Averages (MA)
Types: Simple Moving Average (SMA) and Exponential Moving Average (EMA).
• Purpose: Moving averages smooth out price data to reveal trends and reduce noise in volatile markets.
• Use in Analysis:
🔸SMA: Averages the closing prices over a specific period, like 50 or 200 days, to indicate general trends.
🔸EMA: Places more weight on recent prices, makin...