Which moving averages should I use? As we saw in the last section, using several moving averages at once can provide all manner of trading signals, so it's important you chose the right ones to suit the situation and your trading style. Remember that shorter-period (faster) moving averages stick closer the price, so you're more likely to catch trends or reversals early - though, you're also more likely to get caught out by false signals and fakeouts. Similarly, EMAs give more weight to recent price movements than MAs, so tend to react more quickly to price moves - though are also more vulnerable to short-term price spikes. The best way to trade with moving averages is to experiment yourself with different speeds and find the ones that work for you, based on the type of signals you're looking for and whether you're trading over the short or long term. However, it's sensible to start off by looking at the most popular periods, because the more traders that are using these levels, the more likely they are to become self-fulfilling. For example, if enough traders believe an asset's 50-day simple moving average will turn out to be a strong resistance level - and decide to sell when the market reaches it - then the price will indeed be forced down because of that selling pressure.