Exponential Moving Average Forex Indicator

exponential moving average forex indicator

Exponential Moving Average – The EMA Forex Indicator

It is known that the exponential moving average line is created averaging a number of period points in addition to averaging them.

The difference between the simple moving average is the fact that fresh points are given additional weight. Identical weight on period points are given in the SMA indicator. What is the rationale for adding weight? It was found that many traders needed a moving average that reacted quicker to abrupt changes in price.

Hence, the creation of the exponential moving average. This is seen simply by overlaying both the SMA and the EMA on the same charts. But it does not always do well. Quick reaction to price may give the trader a incorrect signal.

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Tags: currency trading, exponential moving average, exponential moving average forex indicator, exponential moving average forex indicator tutorial, exponential moving average indicator, forex indicators

Friday, June 11th, 2010 currency trading 1 Comment

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