What is a moving average?

A moving average is the average closing price over a set number of past periods, recalculated every day, so it smooths out the noise of daily moves. A simple moving average (SMA) weights every day the same. An exponential moving average (EMA) gives recent days more weight, so it reacts faster.

From the Staxo crypto glossary. The examples use Kraken daily candles (UTC), Oct 10, 2025 to Oct 10, 2026, for the eight coins on Staxo's free plan that are not stablecoins.

Simple and exponential moving averages

A simple moving average (SMA) adds up the last N closes and divides by N. Every day the oldest close drops out and the newest comes in, so the line moves slowly and evenly. A 200-day SMA changes by only 1/200 of the gap between the close that enters and the one that leaves.

An exponential moving average (EMA) gives the newest close a fixed weight, 2 รท (N + 1), and the previous EMA the rest. For a 50-day EMA that weight is 2/51, about 4% a day, and older closes fade out gradually instead of dropping off at once. The EMA reacts faster to a turn in the price, and the SMA is steadier.

On Oct 10, 2026, Bitcoin closed at $82,913. Its 50-day SMA was $80,808, its 50-day EMA $79,869 and its 200-day SMA $71,918. The EMA sat further from the latest price than the SMA: it weights the last few weeks most, and their closes were on average lower than those earlier in the 50 days.

Above or below the 200-day average

Daily closes against their simple moving averages, Kraken daily candles (UTC), Oct 10, 2025 to Oct 10, 2026
CoinDays above 50-dayDays above 200-dayLast close vs 50-dayLast close vs 200-day
TRON188 of 365222 of 365-1.8%-0.5%
BNB160 of 365102 of 338+1.2%+16.8%
Ethereum165 of 36581 of 365-1.9%+17.5%
Solana140 of 36576 of 365+1.3%+26.8%
Bitcoin162 of 36572 of 365+2.6%+15.3%
XRP101 of 36554 of 365-2.2%+9.5%
Cardano102 of 36530 of 365+9.7%+16.9%
Dogecoin108 of 36528 of 365-3.8%-2.3%

TRON spent the most time above its 200-day average, 222 of 365 days, and Dogecoin the least, 28 of 365. The coin that spent the most time above it was also the best performer of the year (TRON, +2.9%), and the two that spent the least were the two that fell the most.

BNB: Kraken's daily history starts later, so the 200-day average only exists from Nov 7, 2025 and the count covers fewer days.

How traders read moving averages

The 50-day and 200-day averages are the most watched. A price above its 200-day average is usually described as a long-term uptrend, below it as a downtrend. When the 50-day crosses above the 200-day, it is called a golden cross, and when it crosses below, a death cross.

Every moving average lags, because it is built from past closes. The longer the period, the later it turns. That makes moving averages a tool to describe the trend you are in and to filter out daily noise, not a forecast. MACD is built from two EMAs, and Bollinger Bands from a 20-day SMA.

How to practice it in Staxo

The Staxo chart does not draw moving averages, so this is one to practice by hand. Pick a coin from the free plan, write down its closing price every day for 20 days and average them. Before each demo trade, check whether the price is above or below that average and note it next to the trade.

After a month, compare the trades you opened above the average with the ones you opened below it. The 6M and 1Y views of the Staxo chart show the longer trend at a glance, and the free RSI and the Pro MACD are both built from averages of past prices, so they show the same idea in another form.

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Moving average questions

What is the 200-day moving average?

The average closing price of the last 200 days, recalculated every day. It is the most common way to describe the long-term trend. From Oct 10, 2025 to Oct 10, 2026, Bitcoin closed above its 200-day average on 72 of 365 days.

Which is better, SMA or EMA?

Neither is better in general. The EMA reacts faster to new prices, which means earlier signals and more false ones. The SMA is smoother and slower. Traders who want to follow short moves tend to use EMAs, and long-term trend lines such as the 200-day are usually SMAs.

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Educational content, not investment advice. The examples describe prices from Oct 10, 2025 to Oct 10, 2026 and say nothing about where they go next. Staxo is a simulator: you practice with demo money, never real money.