oussama94
05-28-2017, 01:28
The WMA is a weighted moving average where,
as we go back in time, weights of each price
decrease in arithmetical progression. Although
it is a more complex indicator than the SMA,
it is also more popular since it puts more weight
on current prices.
Another weighted MA is the EMA, also
sometimes referred to as the Exponentially
Weighted Moving Average (EWMA). In general,
the 50 and 200 day EMA are used as signals
of long term trends. For example, when the
EMA rises it shows the market is bullish and
can indicate an uptrend. If the price candle
closes on the other side of the EMA line, this
can indicate a change in direction of the trend.
as we go back in time, weights of each price
decrease in arithmetical progression. Although
it is a more complex indicator than the SMA,
it is also more popular since it puts more weight
on current prices.
Another weighted MA is the EMA, also
sometimes referred to as the Exponentially
Weighted Moving Average (EWMA). In general,
the 50 and 200 day EMA are used as signals
of long term trends. For example, when the
EMA rises it shows the market is bullish and
can indicate an uptrend. If the price candle
closes on the other side of the EMA line, this
can indicate a change in direction of the trend.