Moving Average
Simple Moveing Average
Simple moving averages (SMA) use the arithmetic mean of a given set of values. If we use SMA or simple moving average of period 10 on a daily chart that would mean closing prices for each day for past 10 days. The average is 'moving'....
Weighted Moving Average
The linearly weighted moving average (WMA) gives more weight to more recent data. For example, using a day 10 moving average the 10th day would be multiplied by 10, the 9th day by 9 and so on. This makes....
Exponential Moving Average
In technical analysis the EMA is more popular that SMA and WMA. Let’s see how EMA is different from Linearly Weighted Moving Average. "Linear growth" means that the original value increases periodically by a set amount. "Exponential growth" means...
Moving Average Convergence Divergence
MACD is comprised of two EMA (Exponential Moving Averages). please see the section “Moving Averages”. Two EMA of MACD means EMA for two time periods, one for longer period...
MACD Divergence
MACD divergence is when MACD is not in confirmation to the price action. Simply speaking lets say the price is going down and there is new recent low but the cooresponding MACD does not make a new low...
Moving Average
Back to moving Averages. Check how do we use moving averages for technical analysis.