IndicatorsBeginner
EMA vs SMA
Two kinds of moving average: simple (every day counts equally) and exponential (recent days count more).
- What it means
- The EMA reacts faster to turns; the SMA is slower but steadier.
- What to watch
- How price behaves around them; many Bitcoin traders watch the 21-week EMA.
- How Compass Alpha uses it
- Context only; not used in Compass scores.
More in Indicators
Moving averages
The average closing price over a set number of days, drawn as a smooth line (for example 20 or 50 days).
RSI (Relative Strength Index)
A 0 to 100 measure of how strong recent gains are compared with recent losses.
MACD
Moving Average Convergence Divergence: the gap between a fast and a slow average, with a signal line.