![]() ![]() ![]() The choice of whether to use an SMA or EMA will really depend on the time period you’re looking at and the type of trader you are. A lot of times you’ll see charts with both SMA and EMA lines because each is giving the trader a different take on the situation. So should you use SMAs or EMAs on your chart? It’s really a personal choice. The EMA is different in that it places more importance on the latest price data by assigning a greater weight to the more recent prices in the calculation. The SMA, or simple moving average, is basically the moving average calculation you learned in statistics class: it’s the sum of the average prices over the number of periods. In the chat rooms, we talk a lot about EMAs and SMAs on our charts. ![]() Moving average is the foundational statistical calculation for many of the most popular free and paid indicators in trading. Let’s talk about what an EMA is and how you can use this indicator in your trading. EMAs are undeniably in the latter category. Some tools don’t make the cut, while others have become vital to my setups. In my 10+ years of trading, I have come across a multitude of tools as I strive to improve my trading every day and refine my strategy. Every trade setup I make starts with checking out exponential moving average (EMA) lines on my charts. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |