Moving Averages (SMA & EMA)

SMA (Simple Moving Average)

Usage

// Basic usage
sma20 := s.k.Indicators().SMA(btc, 20)    // 20-period SMA
sma50 := s.k.Indicators().SMA(btc, 50)    // 50-period SMA
sma200 := s.k.Indicators().SMA(btc, 200)  // 200-period SMA

// With options
sma := s.k.Indicators().SMA(btc, 50, indicators.IndicatorOptions{
    Exchange: connector.Binance,
    Interval: "4h",
})

In a Strategy

func (s *Strategy) GetSignals() ([]*strategy.Signal, error) {
    btc := s.k.Asset("BTC")
    
    price := s.k.Market().Price(btc)
    sma50 := s.k.Indicators().SMA(btc, 50)
    sma200 := s.k.Indicators().SMA(btc, 200)
    
    // Golden cross: SMA50 > SMA200 and price > SMA50
    if sma50.GreaterThan(sma200) && price.GreaterThan(sma50) {
        return []*strategy.Signal{
            s.Signal().
                Buy(btc).
                Quantity(decimal.NewFromFloat(0.1)).
                Reason("Price above SMA50 in golden cross").
                Build(),
        }, nil
    }
    
    return nil, nil
}

EMA (Exponential Moving Average)

Usage

// Basic usage
ema12 := s.k.Indicators().EMA(btc, 12)  // Fast EMA
ema26 := s.k.Indicators().EMA(btc, 26)  // Slow EMA
ema200 := s.k.Indicators().EMA(btc, 200) // Long-term trend

// With options
ema := s.k.Indicators().EMA(eth, 50, indicators.IndicatorOptions{
    Interval: "1h",
})

In a Strategy

func (s *Strategy) GetSignals() ([]*strategy.Signal, error) {
    eth := s.k.Asset("ETH")
    
    price := s.k.Market().Price(eth)
    ema20 := s.k.Indicators().EMA(eth, 20)
    ema50 := s.k.Indicators().EMA(eth, 50)
    
    // EMA crossover
    if ema20.GreaterThan(ema50) && price.GreaterThan(ema20) {
        return []*strategy.Signal{
            s.Signal().
                Buy(eth).
                Quantity(decimal.NewFromFloat(1.0)).
                Reason("Bullish EMA crossover").
                Build(),
        }, nil
    }
    
    return nil, nil
}

Parameters

SMA

SMA(asset, period, ...options) decimal.Decimal

EMA

EMA(asset, period, ...options) decimal.Decimal

Parameter	Type	Description
`asset`	`types.Asset`	Asset to calculate for
`period`	`int`	Number of periods
`options`	`...IndicatorOptions`	Optional exchange/interval

Common Patterns

Trend Identification

price := s.k.Market().Price(btc)
sma200 := s.k.Indicators().SMA(btc, 200)

// Uptrend: price above 200 SMA
if price.GreaterThan(sma200) {
    // Bullish trend
}

// Downtrend: price below 200 SMA
if price.LessThan(sma200) {
    // Bearish trend
}

Support/Resistance

price := s.k.Market().Price(btc)
ema50 := s.k.Indicators().EMA(btc, 50)

// EMA acting as support in uptrend
if price.GreaterThan(ema50) {
    distance := price.Sub(ema50)
    
    // Price pulled back to EMA - potential entry
    if distance.LessThan(ema50.Mul(decimal.NewFromFloat(0.02))) {  // Within 2%
        return s.Signal().Buy(btc).Reason("Price at EMA50 support").Build()
    }
}

Golden Cross / Death Cross

sma50 := s.k.Indicators().SMA(btc, 50)
sma200 := s.k.Indicators().SMA(btc, 200)

// Golden cross: SMA50 crosses above SMA200 (bullish)
if sma50.GreaterThan(sma200) {
    return s.Signal().Buy(btc).Reason("Golden cross").Build()
}

// Death cross: SMA50 crosses below SMA200 (bearish)
if sma50.LessThan(sma200) {
    return s.Signal().Sell(btc).Reason("Death cross").Build()
}

Multi-MA Trend System

ema20 := s.k.Indicators().EMA(btc, 20)
ema50 := s.k.Indicators().EMA(btc, 50)
ema200 := s.k.Indicators().EMA(btc, 200)

// Strong uptrend: all EMAs aligned
if ema20.GreaterThan(ema50) && ema50.GreaterThan(ema200) {
    price := s.k.Market().Price(btc)
    
    // Buy pullbacks to fast EMA
    if price.LessThan(ema20.Mul(decimal.NewFromFloat(1.02))) {  // Within 2%
        return s.Signal().Buy(btc).Reason("Pullback in strong uptrend").Build()
    }
}

SMA vs EMA

Key Differences

Feature	SMA	EMA
Weighting	Equal weight to all periods	More weight to recent prices
Responsiveness	Slower to react	Faster to react
Smoothness	Smoother	More sensitive
Best for	Long-term trends	Short-term signals

When to Use SMA

// Long-term trend identification
sma200 := s.k.Indicators().SMA(btc, 200, indicators.IndicatorOptions{
    Interval: "1d",  // Daily
})

// SMA is better for:
// - Long-term trend filters
// - Major support/resistance levels
// - Reducing noise in volatile markets

When to Use EMA

// Responsive trend following
ema20 := s.k.Indicators().EMA(btc, 20)

// EMA is better for:
// - Short to medium-term trading
// - Faster entry/exit signals
// - Dynamic support/resistance
// - MACD calculations (uses EMA internally)

Common Periods

SMA Periods

Period	Use Case
20	Short-term trend
50	Medium-term trend
100	Intermediate trend
200	Long-term trend (most popular)

EMA Periods

Period	Use Case
12/26	MACD components
20	Short-term trend
50	Medium-term trend
200	Long-term trend

// Common SMA periods
sma20 := s.k.Indicators().SMA(btc, 20)    // Short-term
sma50 := s.k.Indicators().SMA(btc, 50)    // Medium-term
sma200 := s.k.Indicators().SMA(btc, 200)  // Long-term

// Common EMA periods
ema12 := s.k.Indicators().EMA(btc, 12)    // Fast
ema26 := s.k.Indicators().EMA(btc, 26)    // Slow
ema50 := s.k.Indicators().EMA(btc, 50)    // Medium
ema200 := s.k.Indicators().EMA(btc, 200)  // Long-term

What They Measure

SMA (Simple Moving Average)

The arithmetic mean of prices over a period:

SMA = (P1 + P2 + ... + Pn) / n

All prices have equal weight.

EMA (Exponential Moving Average)

Weighted average that gives more importance to recent prices:

EMA = (Price × Multiplier) + (Previous EMA × (1 - Multiplier))
Multiplier = 2 / (Period + 1)

Recent prices have exponentially more weight.

Best Practices

✅ Do

// Use multiple timeframes
sma200_4h := s.k.Indicators().SMA(btc, 200, indicators.IndicatorOptions{
    Interval: "4h",
})
price := s.k.Market().Price(btc)

// Only trade with the trend
if price.GreaterThan(sma200_4h) {
    // Look for buy opportunities only
}

// Combine SMA and EMA
sma200 := s.k.Indicators().SMA(btc, 200)  // Trend filter
ema20 := s.k.Indicators().EMA(btc, 20)    // Entry signal

price := s.k.Market().Price(btc)

// Buy: above SMA200 + pullback to EMA20
if price.GreaterThan(sma200) && price.LessThan(ema20.Mul(decimal.NewFromFloat(1.01))) {
    return s.Signal().Buy(btc).Build()
}

❌ Don't

// Don't use MA alone without confirmation
sma50 := s.k.Indicators().SMA(btc, 50)
price := s.k.Market().Price(btc)

if price.GreaterThan(sma50) {
    // ❌ Too simplistic, needs confirmation
    return s.Signal().Buy(btc).Build()
}

Complete Example

package main

import (
    "github.com/backtesting-org/kronos-sdk/pkg/types/kronos"
    "github.com/backtesting-org/kronos-sdk/pkg/types/strategy"
    "github.com/shopspring/decimal"
)

type MAStrategy struct {
    strategy.BaseStrategy
    k kronos.Kronos
}

func NewMA(k kronos.Kronos) strategy.Strategy {
    return &MAStrategy{k: k}
}

func (s *MAStrategy) GetSignals() ([]*strategy.Signal, error) {
    btc := s.k.Asset("BTC")
    
    // Get moving averages
    price := s.k.Market().Price(btc)
    ema20 := s.k.Indicators().EMA(btc, 20)
    ema50 := s.k.Indicators().EMA(btc, 50)
    sma200 := s.k.Indicators().SMA(btc, 200)
    
    // Trend filter: above SMA200
    inUptrend := price.GreaterThan(sma200)
    
    // EMA alignment: EMA20 > EMA50
    emasAligned := ema20.GreaterThan(ema50)
    
    // Buy: uptrend + EMA crossover + price pullback
    if inUptrend && emasAligned {
        distanceToEMA20 := price.Sub(ema20).Div(ema20).Mul(decimal.NewFromInt(100))
        
        // Price within 2% of EMA20 (pullback)
        if distanceToEMA20.LessThan(decimal.NewFromInt(2)) {
            return []*strategy.Signal{
                s.Signal().
                    Buy(btc).
                    Quantity(decimal.NewFromFloat(0.1)).
                    Reason("EMA pullback in uptrend").
                    Build(),
            }, nil
        }
    }
    
    // Sell: death cross forming
    if ema20.LessThan(ema50) {
        return []*strategy.Signal{
            s.Signal().
                Sell(btc).
                Quantity(decimal.NewFromFloat(0.1)).
                Reason("Bearish EMA crossover").
                Build(),
        }, nil
    }
    
    return nil, nil
}

// Interface methods
func (s *MAStrategy) GetName() strategy.StrategyName { return "MA" }
func (s *MAStrategy) GetDescription() string { return "Moving average crossover strategy" }
func (s *MAStrategy) GetRiskLevel() strategy.RiskLevel { return strategy.RiskLevelLow }
func (s *MAStrategy) GetStrategyType() strategy.StrategyType { return strategy.StrategyTypeTechnical }

References

Go Package: pkg.go.dev - SMA | EMA
Source Code: sma.go | ema.go
Theory: Investopedia - SMA | EMA

SMA (Simple Moving Average)​

Usage​

In a Strategy​

EMA (Exponential Moving Average)​

Usage​

In a Strategy​

Parameters​

SMA​

EMA​

Common Patterns​

Trend Identification​

Support/Resistance​

Golden Cross / Death Cross​

Multi-MA Trend System​

SMA vs EMA​

Key Differences​

When to Use SMA​

When to Use EMA​

Common Periods​

SMA Periods​

EMA Periods​

What They Measure​

SMA (Simple Moving Average)​

EMA (Exponential Moving Average)​

Best Practices​

✅ Do​

❌ Don't​

Complete Example​

See Also​

References​

SMA (Simple Moving Average)

Usage

In a Strategy

EMA (Exponential Moving Average)

Usage

In a Strategy

Parameters

SMA

EMA

Common Patterns

Trend Identification

Support/Resistance

Golden Cross / Death Cross

Multi-MA Trend System

SMA vs EMA

Key Differences

When to Use SMA

When to Use EMA

Common Periods

SMA Periods

EMA Periods

What They Measure

SMA (Simple Moving Average)

EMA (Exponential Moving Average)

Best Practices

✅ Do

❌ Don't

Complete Example

See Also

References