MetenaMoving average SMA vs EMA: definition
The average price over a given period: it smooths out noise and brings out the trend. The EMA gives more weight to recent prices.
Definition
The 50-day simple moving average (SMA) is the average of the last 50 closes. Each day, the oldest drops out of the calculation and the newest comes in.
The exponential moving average (EMA) gives more weight to the latest days. It reacts faster to a turn, but is also more easily fooled by a passing move.
The longer the period, the smoother the average and the more it lags. The 50- and 200-day periods are the most watched on bitcoin.
How to read the chart
The grey line is the bitcoin price. The green one is its 50-day SMA, the gold one its 50-day EMA.
At turning points, the EMA moves away from the SMA faster and tracks the price more closely.
Worked example
On 7 October 2026, bitcoin closes at $83,322, above its 50-day SMA ($80,297) and its 50-day EMA ($79,573). Over the last 365 days, it closed above its 50-day SMA on 161 days.
In Metena
The 20- and 200-day moving averages are available directly in the conditions of a Metena strategy; other periods can be written as an expression.
Notify me at launchRelated terms
- Golden cross
- A crossover where a short moving average (often 50 days) moves above a long one (often 200 days). Read as a sign of an uptrend, with some lag.
- MACD
- An indicator that compares two exponential moving averages to spot a change in trend. A bullish crossover suggests strengthening momentum.
- Bollinger Bands
- An envelope drawn around a moving average, two standard deviations wide. It shows whether the price is unusually high or low given its recent volatility.
- Backtest
- Replaying a strategy on past data to measure what it would have delivered. Useful for testing rules, but the past does not predict the future.
Related guides
- How to read a crypto backtest without being fooled
- Return, maximum drawdown, overfitting, Monte Carlo: how to read the results of a crypto strategy backtest, with real bitcoin examples.
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Notify me at launchEducational content. It is not investment advice. Crypto-assets carry a high risk that can go as far as the total loss of capital.