There are questions about which of these two moving averages (MAs), the simple (SMA) or the exponential (EMA) one, fit swing traders better. A SMA is simply an arithmetic mean, while EMA weights the most recent price data most heavily and thus considered to be more complicated. EMA is useful for faster indicator of price though it can also be a premature one.
An article I found made some principles about their usages for swing traders.
- MAs provide support and resistance line.
- Pay close attention to the slope, upward-sloping MAs is more bullish than one that is sloping sideways. The opposite applies for bearish slope.
- A bullish signal is indicated when price is above an upward-sloping moving average, the opposite applies.
And the list goes up to 7 principles…