Moving
averages are price averages during a specific timeframe. The most common moving
averages take the average of the closing prices.
Simple
Moving Average (SMA)
It is the
average of the closing prices over a certain timeframe. Since it is a simple
average, the same weight is given to all data from beginning to end.
Exponential
Moving Average (EMA)
This moving
average gives more weight to the latest data and less weight to the oldest
data. The EMA is more commonly used due to the fact that new data is more
relevant than older data.
They're very useful tools.
ReplyDeleteVery useful post . thank you.
ReplyDeletevery important indicator
ReplyDeleteReally useful tool.
ReplyDeleteI like moving average, simple indicator.
ReplyDelete