Moving Average: SMA and EMA

Moving Average is the average of prices, of the specific amount of days. 

For ex: 

MA 10 = Moving Average of the last 10 days prices.

where: SMA 10 and EMA 10  

 

There are many types of Moving Averages but the most used are: Simple Moving Average and Exponential Moving Average. The difference between those is that for EMA, last days count more in the final result, then SMA. 

Here are formulas for calculating those MA: 

http://en.wikipedia.org/wiki/Moving_average 

In the trading platform you can set those MA to: close, open, high, low,  median price ( HL/2 ), typical price (HLC/3) and weigted price (HLCC/4).

Best Regards,


^^_Lord_Ice_^^