2. Technical analysts in stock market use SMA for predicting medium to long term trends of a stock. As a point to note one must remember that Moving Averages is a useful tool and must be used in conjunction with other indicators to get better and accurate results. One will have to experiment with this data to arrive at a conclusion that particular type of average is best suited for a particular trend and thus for that one has to use live data of the market.
Know Technical Analysts Preference for EMA or SMA for Predicting Trend
Posted By On 5/12/2009 10:31:00 PM Under EMA, SMA2. Technical analysts in stock market use SMA for predicting medium to long term trends of a stock. As a point to note one must remember that Moving Averages is a useful tool and must be used in conjunction with other indicators to get better and accurate results. One will have to experiment with this data to arrive at a conclusion that particular type of average is best suited for a particular trend and thus for that one has to use live data of the market.