Crypto News

History of Moving Averages Moving averages have been used in financial markets for over a century, pioneered by technical analyst Charles Dow in the late 19th century. However, the concept of moving averages can be traced back to Japanese rice traders in the 18th century, who used a form of moving average called the "Kagi" chart to analyze price trends. Ever since then, moving averages have been a popular tool among traders to analyze market trends and make informed trading decisions. Types of Moving Averages There are several types of moving averages used in technical analysis, with the two most common being the simple moving average (SMA) and the exponential moving average (EMA). The SMA is a straightforward calculation, taking the sum of a set of prices over a specified time period and dividing it by the number of prices in the set. On the other hand, the EMA gives more weight to recent prices, making it more responsive to current market conditions. Both types of ...