The Moving Average (MA) indicator is a popular technical analysis tool for smoothing out cryptocurrency price fluctuations. The main types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).
SMA is an average of prices over a given period. It is suitable for long-term trends but responds to changes with a delay.
EMA gives more weight to recent prices, responding faster to market fluctuations. This makes it useful for short-term trading.
MA helps identify support and resistance levels, as well as entry and exit points. Traders often use both types of MA to obtain more accurate trading signals.