Here are the popular periodic moving averages used by many traders and the role each moving average plays:
  • EMA 5: This moving average helps traders measure trends for low timeframes. It can be a support in a strong uptrend or a resistance to a strong downtrend. This moving average should be used only during trends with low volatility.
  • 10 EMA: The exponential moving average (EMA) is one of the indicators used by many traders to determine trend. When the price is above the 10 EMA, it shows an uptrend, and traders should prioritize buying. And vice versa, when the price is below the 10 EMA, shows a downtrend, and traders should prioritize selling. The 10 EMA is also one of the indicators loved by market witch Marty Schwartz for his trading history.
  • 21 EMA: This is the moving average used for mid-term trading. It helps traders identify the mid-term trend of a market, which is a dynamic resistance/support in a trend. If the price breaks down this moving average, it is a potential reversal signal.
  • SMA 50: This is also the average line used by many traders, and it is also used to determine the signal of a gold cross or death cross to identify long-term trends, and good signals for trading. . Besides, the 50 SMA is also the support level in a trend.
  • SMA 100: This is the moving average that acts as SMA 200: Average SMA 200 helps traders determine the long-term trend of the market on large timeframes such as D1, W1. They provide good trading signals for traders. When the market is in an uptrend, traders can buy on when the price touches the 200 SMA on a pullback and bounces upwards. And in contrast to the downtrend, a trader can sell in a pullback (bullish) to the 200 SMA, the 200 SMA as a resistance, the price can rise there and then fall back again.strong resistance in a trend. However, if the 100 SMA is broken, the price will probably find the next support resistance, the 200 SMA.
Above are the popular moving averages and their role. If you understand and understand the main roles of each moving average and know which market to apply it will give traders a good advantage in trading.

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