The main different between the simple average and the exponential moving average is that the simple average only calculates the average price of any cryptocurrency asset pair over a period of time period. While the exponential moving average gives more weight to the most recent prices.
In exponential moving average, the current price data of a particular cryptocurrency asset has more weighted effect on the moving average than the previous price data. While in simple moving average, the weight is the same for all the prices over the time period.
The exponential moving average is more sensitive to current price movement compared to the simple moving average.
How To Add a "simple and Exponential Moving Average" to The Chart
Adding the Simple and Exponential Moving Average indicator on any cryptocurrency chart is straight forward to do on trading view platform.
- Go to the tradingview website https://www.tradingview.com and on the indicators tab section, click on the indicators tab
- Go to the search bar section, on the search, search for moving average
- Select the first one written only moving average
- Click on the simple moving average area, click on the settings icon
- On the simple moving average settings, the main sections are the inputs and the styles. The input is for changing the parameters and periods. The styles sections for changing the different colour styles just for visual preferences.
Adding exponential moving average indicator
- On the indicators tab section, click on the indicators tab
- Go to the search bar section, on the search, search for moving average
Click on the exponential moving average area, click on the settings icon
On the exponential moving average settings, the main sections are the inputs and the styles. The input is for changing the parameters and periods. The styles sections for changing the different colour styles just for visual preferences.
