Charting
and Historical Backtesting Software by Ashkon Technology LLC
Exponential
Moving Average Difference Interpretation:
A buy signal is
generated when exponential moving average difference crosses zero in an
upward direction.
A sell signal is
generated when exponential moving average difference crosses zero level in
a downward direction.
Exponential Moving Average
Difference Calculation:
Parameters: n1,n2
- number of days; n1<n2
Notes:
Essentially when a shorter-term moving average is rising above the
longer-term moving average it signals that investor expectations are
becoming more bullish and vice-versa.
