Final Cut Pro Transitions and Effects [One-Click Color Grading Inside] Biggest Bundle Ever for FCPX5/21/2020
0 Comments
The Granary Kitchen
1935 50 Ave, Red Deer, AB T4R 1Z4, Canada +1 403-986-4663 Enchanted Florist
7830 E. Redfield Rd, #5, Scottsdale AZ 85260, United States +1 480-994-1758 As previously discussed in yesterday’s article, we are not going to talk about a different moving average for today’s forex trading tips. Today, we will talk about the Exponential Moving Average, or simply the EMA. The EMA, like the SMA calculates the closing prices of an investment vehicle over a specified period of time. However, there is one key difference between the SMA and the EMA. And this is where today’s forex trading tips starts.
The EMA takes into the closing prices over a specified period of time, however it puts a heavier emphasis on the most recent days. The EMA combats unusually spikes in the pricing that would affect the SMA. Just consult FXGM ZA Let me explain this idea a little bit more though… I will give another example. Let’s say that we are going to do a moving average over a 5 day period. The closing prices for the following days are: $74, $10, $14, $15, $13. Now let’s say that we are using the SMA to calculate the moving average. 74+10+14+15+13 / 5= $25.2 The reason why it is so much higher that the past 4 days is it weighs the huge drop in price just as equally as the other days. To many traders, this would seem like an inaccurate reading. Sure there was a big drop in the pricing, however the past 4 days have been fairly calm. The EMA would read lower than $25.2 . We feel like this is a great tip to put into our forex trading tips because on fact that it can help many traders find a more accurate average when talking about volatile currency pairs. So, for our last point in today’s forex trading tips, when should each be used? In our opinion, the EMA should be used when a pair has been acting very volatile. The SMA should be reserved for more calmer pairs. However we will say this, many traders calculate both averages to see the difference between the two. Both are great tools as well for helping with forex trading. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
May 2020
Categories |