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Moving average

Moving averages show the direction of the trend very well. But this works well on longer timeframes, where there are fewer false signals. But in a flat, trading only using this indicator, you can make many incorrect entries. Therefore, different market conditions require different trading approaches.
 
In my experience, both simple moving averages (SMAs) and exponential moving averages (EMAs) have their merits depending on the trading strategy and market conditions. SMAs offer smoother price averaging over a specified period, while EMAs place more weight on recent price data, making them more responsive to recent price changes.
 
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