Exponential Smoothing Similarities and Differences moving average [macd]

Exponential Smoothing Similarities and Differences moving average[Macd]

■Exponential Smoothing Similarities and Differences moving average[Macd] -- it is an indicator constructed using two exponentially weighted moving averages. It can be used as both a swing index and a trend signal, and can be combined into one. In its formula, the number of days of the two moving averages has been selected, but you can also choose another one. In this method, the two weighted moving averages evolve around the zero line. The most useful signal is that the short-term average line (solid line) passes through the long-term average line (dotted line ). When the short-term average goes up to the long-term average, it is the buy signal. When the short-term average goes down to the long-term average, it is the sell signal. Figure 11-4 From this method, we can also find the phenomenon of mutual deviation. The signal is verified by the zero line crossing of the same moving average. We can also use the trend line method to study the trend changes of the average line. The ideal buying signal is that there is a bullish deviation first, then the short-term moving average line goes up to the long-term average line, and the last two are all up to the zero line. The ideal selling signal is just the opposite. The difference between the fast (short-term) Moving Average and the slow (long-term) Moving Average represents the distance between them, based on the difference, this paper analyzes the signs of convergence and separation between the fast moving average and the slow moving average to serve as the basis for judging market prices. ■ Exponential smoothing similarities and differences the moving average uses exponential smoothing technology to calculate the average price,Formula: Ema: Exponential Smoothing value n: calculation period 1-2/(n + 1), 2/(n = 1): smoothing Coefficient The difference between EMA on the 12th and EMA on the 26th DIF: Formula for Calculating the exponential smoothing value (DEA) of the difference value: The initial value can be replaced by the first DIF. ① When DIF and DEA are both above the 0 line, the trend is the multi-headed market. ② When DIF and DEA are both under the 0 line, the general trend is a short market. ③ If the price changes deviate from the edge movements of DIF and DEA, the market may change.