{"format":"alysly-page/1","url":"https://alysly.com/learn/moving-averages/","json":"https://alysly.com/json/learn/moving-averages/index.json","lang":"en-US","title":"Moving Averages: SMA, EMA and Crossovers Explained","description":"SMA and EMA, choosing the period, golden cross and death cross – how moving averages smooth price and what that smoothing costs.","published":"2026-08-02T15:41:33+02:00","modified":"2026-11-01T18:26:04+01:00","alternates":[{"lang":"de-DE","url":"https://alysly.com/de/lernen/gleitende-durchschnitte/","json":"https://alysly.com/json/de/lernen/gleitende-durchschnitte/index.json"}],"about":"Machine-readable version of the page at url. It contains the text, tables and key figures published there, but not the interactive charts and tools.","breadcrumb":[{"name":"Investing & Trading Basics","url":"https://alysly.com/learn/"},{"name":"Level 2","url":"https://alysly.com/learn/#level-2"},{"name":"Moving Averages","url":"https://alysly.com/learn/moving-averages/"}],"content":[{"type":"paragraph","text":"Level 2 Patterns & Indicators · Part 5/9"},{"type":"heading","level":1,"text":"Moving Averages"},{"type":"paragraph","text":"By Alexander Bock, founder and data analyst","links":[{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"The moving average is the oldest and most widely used indicator. It answers exactly one question: where did the price sit on average over the last n periods?"},{"type":"heading","level":2,"id":"sma-and-ema","text":"SMA and EMA"},{"type":"paragraph","text":"The simple moving average (SMA) gives every one of the last n closes the same weight. The exponential moving average (EMA) gives recent prices more weight. It reacts faster and turns earlier, but it is wrong more often."},{"type":"paragraph","text":"Which one is “better” depends only on what you want to buy: a faster reaction or fewer false signals. You cannot have both. Choosing between SMA and EMA is a trade-off, not an optimization."},{"type":"heading","level":2,"id":"the-period","text":"The Period"},{"type":"paragraph","text":"Common values are 20, 50, 100 and 200 periods. These numbers have no mathematical basis. They are convention – and they work partly because so many participants watch the same lines."},{"type":"paragraph","text":"A 200-day average shows the long-term direction and is crossed rarely. A 20-day average stays close to the price and is crossed constantly. What matters is that you fix the period before the analysis. Picking the period that would have worked best in hindsight fits a parameter to the past. It teaches nothing about the future."},{"type":"heading","level":2,"id":"crossovers","text":"Crossovers"},{"type":"image","src":"https://alysly.com/img/ta/sma-crossover.e0605e08805d761acf8fe5a2f4d39c6e64aa23fcc582e6f2b0f8b6b81d9a1b00.webp","alt":"Price with a short and a long moving average and two crossover points"},{"type":"paragraph","text":"The short average (dark green) reacts faster, the long one (violet) more slowly. (1) When the short crosses above the long it is called a bullish crossover, (2) the reverse a bearish one. Both lines are pure history: they smooth prices that already traded. The price for that is lag — in sideways markets it produces false signal after false signal."},{"type":"paragraph","text":"When a short average crosses a long one from below, it is called a bullish crossover. With periods of 50 and 200, the name golden cross has stuck, and death cross for the opposite case."},{"type":"paragraph","text":"The names are more spectacular than the substance. A crossover is a mechanical consequence of price movement, not extra information: it happens after the price has already moved a long way. Studies of these signals regularly find that their advantage over simple buy-and-hold is small and not stable across periods."},{"type":"heading","level":2,"id":"the-built-in-lag","text":"The Built-In Lag"},{"type":"paragraph","text":"Every average is history. A 50-day average has its center of mass roughly 25 days in the past. It cannot turn earlier than the price, only later."},{"type":"paragraph","text":"That leads to systematic behavior:"},{"type":"list","ordered":false,"items":["In trends, averages work well, because the lag costs little.","In sideways phases, they produce one false signal after another, because the price keeps crossing back and forth."]},{"type":"paragraph","text":"Since sideways phases take up most of the time, crossover systems usually have a low hit rate, and a few large trends carry the result. If you look at the hit rate alone, a working system looks broken. Expectancy tells the other half of the story.","links":[{"text":"Expectancy","href":"https://alysly.com/learn/risk-and-position-sizing/"}]},{"type":"heading","level":2,"id":"sensible-uses","text":"Sensible Uses"},{"type":"list","ordered":false,"items":["Trend filter: only take positions in the direction of the higher average. That cuts the number of opportunities and raises their quality.","Dynamic zone: in strong trends the price often runs along an average. The area around the line then takes the place of a horizontal support.","Slope instead of position: do not only ask whether the price is above the line, but whether the line is rising. The slope is the more stable measure."]},{"type":"heading","level":2,"id":"next","text":"Next"},{"type":"paragraph","text":"The next article covers indicators that track speed rather than direction: oscillators."},{"type":"list","ordered":false,"items":[{"text":"Previous Continuation Chart Patterns","href":"https://alysly.com/learn/continuation-chart-patterns/"},{"text":"Next Oscillators: RSI and Stochastics","href":"https://alysly.com/learn/oscillators/"}]},{"type":"heading","level":2,"text":"Indices"},{"type":"table","caption":"Indices, performance over the selected period","columns":["Index","1M"],"rows":[[{"text":"Dow Jones","href":"https://alysly.com/markets/indices/dow-jones/"},{"text":"+1.0%","data":{"m1":"+1.0%","m3":"-4.3%","m6":"+4.9%","ytd":"+7.6%","max":"+30.0%"}}],[{"text":"S&P 500","href":"https://alysly.com/markets/indices/sp500/"},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+35.6%"}}],[{"text":"MSCI World","href":"https://alysly.com/markets/indices/msci-world/"},{"text":"-2.0%","data":{"m1":"-2.0%","m3":"-2.4%","m6":"+3.7%","ytd":"+10.0%","max":"+35.0%"}}],[{"text":"MSCI ACWI","href":"https://alysly.com/markets/indices/msci-acwi/"},{"text":"-3.3%","data":{"m1":"-3.3%","m3":"-3.0%","m6":"+2.3%","ytd":"+10.2%","max":"+41.5%"}}]]},{"type":"heading","level":2,"text":"ETFs"},{"type":"table","caption":"ETFs, performance over the selected period","columns":["Fund","1M"],"rows":[[{"text":"SPDR S&P 500 ETF Trust SPY","links":[{"text":"SPDR S&P 500 ETF Trust","href":"https://alysly.com/markets/etfs/us/spy/"}]},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+35.6%"}}],[{"text":"Vanguard S&P 500 ETF VOO","links":[{"text":"Vanguard S&P 500 ETF","href":"https://alysly.com/markets/etfs/us/voo/"}]},{"text":"-2.6%","data":{"m1":"-2.6%","m3":"-2.2%","m6":"+4.2%","ytd":"+10.6%","max":"+34.1%"}}],[{"text":"iShares Core MSCI World UCITS ETF USD (Acc) EUNL","links":[{"text":"iShares Core MSCI World UCITS ETF USD (Acc)","href":"https://alysly.com/markets/etfs/ishares-core-msci-world-ucits-etf-usd-acc/"}]},{"text":"-2.0%","data":{"m1":"-2.0%","m3":"-2.3%","m6":"+4.3%","ytd":"+10.6%","max":"+487.5%"}}],[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c XMME","links":[{"text":"Xtrackers MSCI Emerging Markets UCITS ETF 1c","href":"https://alysly.com/markets/etfs/xtrackers-msci-emerging-markets-ucits-etf-1c/"}]},{"text":"-9.4%","data":{"m1":"-9.4%","m3":"-4.1%","m6":"-3.3%","ytd":"+14.0%","max":"+93.0%"}}]]},{"type":"heading","level":2,"text":"Stocks"},{"type":"table","caption":"Stocks, performance over the selected period","columns":["Stock","1M"],"rows":[[{"text":"NVIDIA Corporation NVDA","links":[{"text":"NVIDIA Corporation","href":"https://alysly.com/markets/stocks/nvidia-corporation/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-13.5%","data":{"m1":"-13.5%","m3":"-2.5%","m6":"+5.2%","ytd":"+10.8%","max":"+62.2%"}}],[{"text":"Apple Inc. AAPL","links":[{"text":"Apple Inc.","href":"https://alysly.com/markets/stocks/apple-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"-0.3%","data":{"m1":"-0.3%","m3":"+7.3%","m6":"+16.8%","ytd":"+22.1%","max":"+45.8%"}}],[{"text":"Tesla Inc. TSLA","links":[{"text":"Tesla Inc.","href":"https://alysly.com/markets/stocks/tesla-inc/"},{"text":"United States","href":"https://alysly.com/markets/stocks/browse/?country=United%20States"}]},{"text":"+5.2%","data":{"m1":"+5.2%","m3":"+21.7%","m6":"+2.3%","ytd":"-11.4%","max":"+65.3%"}}]]},{"type":"paragraph","text":"Data note 1","href":"#dn-1"},{"type":"heading","level":2,"text":"More Studies"},{"type":"list","ordered":false,"items":[{"text":"Jul 21, 2026 Collectibles ×5.4 for the same cards, matched-model index, Mar 2022 – Aug 2026 Is the Pokémon Card Market in a Bubble? 4,159 Sales Analyzed Prices for PSA-graded cards multiplied. Measured on the same cards they rose 438%, while the raw median shows 786% because pricier cards came up for sale later.","href":"https://alysly.com/analysis/pokemon-card-market-bubble/"},{"text":"May 19, 2026 Crypto 45.6% Bitcoin’s annualized volatility, Jul 2024 – Sep 2026 Bitcoin in Investment Portfolios: The Real Numbers Bitcoin is calmer than it was and still about three times as volatile as the stock market. It moves with stocks, not with gold.","href":"https://alysly.com/analysis/bitcoin-investment-portfolios/"},{"text":"Mar 17, 2026 Wealth €1.2m needed for €3,000 a month indefinitely at a 3% real return Living Off Your Returns: What It Really Takes The capital you need is arithmetic. The return you assume is a guess, and it can triple the answer.","href":"https://alysly.com/analysis/living-off-returns/"}]},{"type":"paragraph","text":"View all studies","href":"https://alysly.com/analysis/#studies"},{"type":"heading","level":2,"text":"Learn"},{"type":"list","ordered":false,"items":[{"text":"Oscillators: RSI and Stochastics RSI, stochastics, divergences – and the overbought misconception.","href":"https://alysly.com/learn/oscillators/"},{"text":"MACD and Trend Strength MACD, signal line, histogram – and ADX as strength without direction.","href":"https://alysly.com/learn/macd-and-trend-strength/"}]},{"type":"paragraph","text":"Course overview","href":"https://alysly.com/learn/"},{"type":"paragraph","text":"Updated Nov 1, 2026 · Content and figures checked Oct 19, 2026"},{"type":"heading","level":2,"id":"note-legend-h","text":"Data Notes"},{"type":"paragraph","text":"All calculations run automatically and are not investment advice."},{"type":"list","ordered":true,"items":[{"id":"dn-1","text":"Returns computed automatically from the price series, excluding dividends, taxes and costs."}]},{"type":"paragraph","text":"Data and methodology: Alysly · Responsible for content: Alexander Bock","links":[{"text":"Alysly","href":"https://alysly.com/methodology/"},{"text":"Alexander Bock","href":"https://alysly.com/about/"}]},{"type":"paragraph","text":"View all data notes","href":"https://alysly.com/notes/"}],"structured_data":[{"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://alysly.com/#org","name":"Alysly","url":"https://alysly.com/","logo":{"@type":"ImageObject","url":"https://alysly.com/img/icon-512.png","width":512,"height":512},"description":"Data-driven insights, transparent analysis and powerful tools for long-term investors.","email":"mail@alysly.com","contactPoint":{"@type":"ContactPoint","contactType":"customer support","email":"mail@alysly.com","availableLanguage":["de","en"]},"address":{"@type":"PostalAddress","addressLocality":"Haltern am See","postalCode":"45721","addressCountry":"DE"},"founder":{"@id":"https://alysly.com/#founder"},"sameAs":["https://www.linkedin.com/company/alyslycom/","https://www.youtube.com/@alyslycom","https://x.com/alyslycom"],"publishingPrinciples":"https://alysly.com/methodology/"},{"@type":"Person","@id":"https://alysly.com/#founder","name":"Alexander Bock","jobTitle":"Founder and data analyst","url":"https://alysly.com/about/","sameAs":["https://www.linkedin.com/in/abxk/"]},{"@type":"WebSite","@id":"https://alysly.com/#site","url":"https://alysly.com/","name":"Alysly","alternateName":"Alysly Investment Analysis","inLanguage":"en-US","publisher":{"@id":"https://alysly.com/#org"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://alysly.com/markets/stocks/browse/?q={search_term_string}"},"query-input":"required name=search_term_string"}},{"@type":"WebPage","@id":"https://alysly.com/learn/moving-averages/#webpage","url":"https://alysly.com/learn/moving-averages/","name":"Moving Averages – Alysly","description":"SMA and EMA, choosing the period, golden cross and death cross – how moving averages smooth price and what that smoothing costs.","inLanguage":"en-US","isPartOf":{"@id":"https://alysly.com/#site"},"dateModified":"2026-11-01T18:26:04+01:00","publisher":{"@id":"https://alysly.com/#org"},"mainEntity":{"@id":"https://alysly.com/learn/moving-averages/#entity"},"primaryImageOfPage":{"@type":"ImageObject","url":"https://alysly.com/img/ta/sma-crossover-og.891532b38cd27da3a5e86e0650632fd62bb455444554fe91b05820a3a02d09de.png","width":1200,"height":630}}]},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Investing & Trading Basics","item":"https://alysly.com/learn/"},{"@type":"ListItem","position":2,"name":"Moving Averages"}]},{"@context":"https://schema.org","@type":"Article","@id":"https://alysly.com/learn/moving-averages/#entity","headline":"Moving Averages","description":"SMA and EMA, choosing the period, golden cross and death cross – how moving averages smooth price and what that smoothing costs.","inLanguage":"en-US","mainEntityOfPage":"https://alysly.com/learn/moving-averages/","image":[{"@type":"ImageObject","height":630,"url":"https://alysly.com/img/ta/sma-crossover-og.891532b38cd27da3a5e86e0650632fd62bb455444554fe91b05820a3a02d09de.png","width":1200},{"@type":"ImageObject","height":560,"url":"https://alysly.com/img/ta/sma-crossover.e0605e08805d761acf8fe5a2f4d39c6e64aa23fcc582e6f2b0f8b6b81d9a1b00.webp","width":1280}],"isPartOf":{"@type":"CreativeWorkSeries","name":"Investing & Trading Basics","url":"https://alysly.com/learn/"},"educationalLevel":"Level 2","author":{"@id":"https://alysly.com/#founder"},"publisher":{"@id":"https://alysly.com/#org"},"datePublished":"2026-08-02T15:41:33+02:00","dateModified":"2026-11-01T18:26:04+01:00"}],"notice":"© 2026 Alysly.com. Not investment advice. All data without guarantee. Financial information is analyzed and presented partly with AI assistance."}