Glossary Detail: Moving Averages (MA/SMA/EMA)
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Backtesting Moving Averages (MA/SMA/EMA) on High-Beta Names
Smoothed price averages over N periods — the backbone of trend identification. SMA weights all periods equally; EMA weights recent prices more.
Further Details:
A moving average smooths price data by averaging closing prices over a set number of periods. The Simple Moving Average (SMA) weights all periods equally. The Exponential Moving Average (EMA) gives more weight to recent prices, making it more responsive to new information.