Moving averages (MAs) are the indicators mostly used in technical analysis and represent an instrument that smooth out the noise in the price in order to mitigate wrong buy/sell signals. This indicator is also called trend-following or lagging because it is based on past price information.
The most commonly used MAs are the simple moving average (SMA), which is just the average price of a security over a defined time period, and the exponential moving average (EMA), which gives greater weight to more recent prices.
Even though there are clear differences between simple moving averages and exponential moving averages, one is not necessarily better than the other. Exponential moving averages have less lag and are therefore more sensitive to recent prices - and recent price changes. Exponential moving averages will turn before simple moving averages and therefore one can consider them more for shorter time frames and fast-moving markets. Simple moving averages, on the other hand, represent a true average of prices for the entire time period. As such, simple moving averages may be better suited to identify support or resistance levels and smooth out unnecessary noise in the price for longer term positions.