Guide
Choosing SMA or EMA for your holding period
Simple and exponential averages answer different questions. Match the calculation to how long you intend to stay in a trade.
An exponential moving average weights recent prices more heavily. A simple moving average treats each bar in the window equally. Neither is morally superior. The mismatch that hurts students is using a fast EMA on a multi-week swing as if it were a weekly compass.
A practical pairing
For swing holds measured in days to a few weeks, many of our participants settle on a simple 50-period line for context and a shorter EMA for timing discussions — not as an automatic entry trigger. The SMA’s slower response keeps them from redesigning the trend story every session.
Intraday traders often prefer EMAs because the day session produces enough bars for recent weight to matter. Even then, we ask them to keep one slower simple average visible so they remember the broader path.
What we ask you to write down
Before the second masterclass evening, write one sentence: “I use X because my typical hold is Y.” If you cannot finish that sentence, the average on your chart is decoration.