Trading Up-Close: SMA vs EMA

October 23, 2019
On this episode of Trading Up-Close, Lee Bohl explains the differences between simple moving average (SMA) and exponential moving average (EMA).

Moving averages are technical indicators traders can use to track stock price levels over time. The basic idea is that looking at how a stock's average price has changed over a specific number of days can show you if it has been trending higher, lower or just moving sideways. You can also use moving averages to identify support and resistance levels to support other trading strategies.

Two common moving averages are simple moving averages (SMA) and exponential moving averages (EMA). Each has its strengths and weaknesses. Which one you use for a given trade will depend on your strategy. On this episode of Trading Up-Close, Lee Bohl takes a closer look at the differences between the two.

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What is it like to trade with Schwab?

Today's Options Market Update

Equities look to bounce back as yields retreat.

Looking to the Futures: Bond Routs

Treasury yields have found levels not seen since 2010 as bonds around the world suffer one of the worst routs this century.

Weekly Trader's Outlook

Bears remain in control, but bulls may get a near-term bounce.

Important Disclosures

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

Schwab does not recommend the use of technical analysis as a sole means of investment research.

Past performance is no guarantee of future results.

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