Charting
and Historical Backtesting Software by Ashkon Technology LLC
Exponential Moving Average
Interpretation:
A buy signal is
generated when the stocks price rises above its moving average.
A sell signal is
generated when the stocks price falls below its moving average.
Exponential Moving Average Calculation:
Parameters: n - number of days
Notes:
Exponential moving average is related to simple moving
average. In other words it is a weighted simple moving average putting
more weight on the today's closing price. It may be measured in
percentage, which is the percentage that is applied to today's closing
price weighting yesterdays simple moving average. The formula to convert
exponential percentage into simple moving average number of span days is
as following:
