The exponential moving average (EMA) is a technical chart indicator that follows the price of a stock or commodity through time. The EMA is a sort of weighted moving average (WMA) that gives recent price data more weight or importance.
For day traders, the 8- and 20-day EMAs are the most popular time periods, while long-term investors prefer the 50- and 200-day EMAs. Moving averages can be difficult to use when markets are flat, which is why trending markets will reveal their actual merits.
A moving average is a technical indicator used by investors and traders to evaluate which way the market is trending. It's calculated by summing all the data points from a given period and dividing the total by the number of periods. Technical traders use moving averages to generate trading signals.
The simple exponential smoothing (SES) forecast is somewhat better than the simple moving average (SMA) forecast for a given average age (i.e., amount of lag) because it gives more weight to the most recent observation—i.e., it is slightly more "sensitive" to recent changes.
Swing traders can utilise the EMA crossover to time entry and exit locations. By focusing on the nine-, thirteen-, and fifty-period EMAs, a rudimentary EMA crossover strategy can be implemented. When the price crosses above these moving averages after being below them, it is called a bullish crossover.
Learner's Ratings
4.5
Overall Rating
78%
6%
10%
0%
6%
Reviews
M
md arman
5
i watch this 4,5 times but really i don't understand the topic.
P
Parshuram Bagade
5
Very nice explaination about stock market
S
Subham Kumar sahu
5
Option trading course
P
Prasoon Dixit
5
As we know in fundamental basics we need to follow the two approaches 1 top-down approach 2nd Bottom-up approach.Kindly give some examples of bottom-up approach and top-down approach,(Discussion box?)
D
Dinesh Kumar
5
yash sir options video ke liye intezaar rahega
H
Hemant Saini
5
SIR optional treading ke ek proper video lavo ,us m pura smjavo na , Plese SIR .
R
Rahul Kumar Sharma
5
Nice course 👍👍
A
Akash sarkar
5
Nice course
S
suraj vinay das
5
sir fundamental analysis and technical analysis thoda aur earsy language me samjhaa dijiye please.
Share a personalized message with your friends.