11 June 2026

SMA versus EMA: notes from the foundations workshop

How we explain lag, weighting, and when a simple average is enough for daily chart work.

Analytics dashboard with charts on a desk

Participants often ask which average is “better.” In the Foundations workshop we treat that as the wrong question. A simple moving average treats every bar equally; an exponential average weights recent closes more heavily. Both lag. Both smooth. The useful difference is how quickly each reacts when a trend bends.

On daily ASX charts we typically start with a 20-period SMA for structure and an EMA of similar length only when a student needs earlier feedback on slope changes. The session ends with a short writing drill: describe the last twenty bars using one average only, then again with both—and notice where language gets noisier.

Training at File Ridge Core stays educational. Nothing in these notes is a recommendation to buy or sell any instrument.

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