![]() ![]() Simple moving average is calculated by adding the the closing price of last n number of days and then diving by the number of days(time-period). Simple Moving Average is one of the core technical indicators used by traders and investors for the technical analysis of a stock, index or securities. In this article, we’ll focus primarily on the strategies involving SMAs and EMAs. Exponential and weighted averages apply more weight to recent data points.Īmong these, Simple Moving Averages(SMAs) and Exponential Moving Averages(EMAs) are arguably the most popular technical analysis tool used by the analysts and traders. ![]() Simple moving averages apply equal weight to all data points. The only noteworthy difference between the various moving averages is the weight assigned to data points in the moving average period.
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