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Technical analysis indicator
Exponential moving average
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Exponential moving average is technical analysis indicator where recent days prices are given more weight than older days prices.
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Ema is different from simple moving average by both calculation method and in the way that prices are weighted.
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The Exponential Moving Average is effectively a weighted moving average .
Introduction:
EMA = {Close – EMA(previous day)} * multiplier + EMA(previous day)
Multiplier = (2 / (Time periods + 1))
Formula:
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The benefit of the EMA indicator is its visual simplicity.
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Traders can quickly assess the prevailing trend of price behavior from the direction of the EMA.
Advantages:
Technical charts for EMA:
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Please visit www.nsedata.com for more details.
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