The moving average is a line that averages the closing prices in the past few periods. Unlike the candle chart, it reflects the price trend more reliably.

Here are two different moving averages:

Simple moving average (SMA)-A simple moving average is to add up the prices of several (n) periods (such as 5 or 10 minutes, every day, etc.). ) one by one, and then divided by the total period n to get the average value of the nth period. Then mark the average value of each period on the graph and connect them with curves to get the average line of n periods.

Smma (moving average)-Since the moving average is a lagging indicator, smma will give more weight to the latest data when calculating the average in order to get closer to the market trend. In this way, we can see the market trend earlier.

The EMA has many uses, mainly used to identify/confirm the trend, as well as to identify/confirm the resistance level and support level. For example, if the express line rises too slowly, it is called "golden fork", which is a buying signal. When the fast line crosses the slow line, it is called a "dead fork", which is a sell signal.