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TOPIC: Moving Averages

Moving Averages 22 Nov 2016 11:09 #1

  • Trendfriend
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we are all learning every day Austin.

You can use both, maybe it would be too many lines on the chart :unsure:

The sma is exactly as it says, just a closing price divided by the number of days. The issue with sma is it's quite delayed, and lagging behind the current action.

The ema has more emphasis in it's calculation on the current price action. I don't remember exactly how it's calculated tbh.
This means it has less delay in it's movement and i think most Analyst prefer to use it. I prefer ema as well on my charts.

hope that's helpful.
atb, wdik, dyor.
trendfriend
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Moving Averages 21 Nov 2016 17:59 #2

  • Austin67
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Hi,

Just wanting to ask what peoples' opinions are on simple versus exponential moving averages?

Is there a specific reason to use one over another or does it come down to personal preference/belief?

Would you have a combination of both on one chart i.e. you might have SMA for 20, 50, 100 but EMA for 200 (or any other combination)? Or would you keep them all to the same format?

Just interested in peoples' views.

Thanks, every day is a school day!
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