Types of moving average

SMA (simple): the arithmetic mean over N periods. Smoother, reacts slowly.

EMA (exponential): gives more weight to recent prices. More reactive.

Moving-average strategies

Crossover: the fast EMA (9) crossing above the slow EMA (21) → CALL. Crossing below → PUT. The "golden cross" (50 EMA over 200) and "death cross" are strong signals.

Price vs the average: price above the 200 EMA = uptrend. Below = downtrend.

Bounce off the average: in an uptrend, price pulling back to the 20/50 EMA and bouncing is a CALL opportunity.

💡 Popular setup

For binary options: 9 EMA + 21 EMA for fast signals. To confirm the trend: 50 or 200 EMA.