Technical Analysis Challenge Day 3 - EMA
Welcome back.![]()
What's new for today? Let's take a look at a new moving average indicator: exponential moving average (EMA).
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697197-77777002-android-org.png/bigmoo)
What can you learn from the EMA challenge?
● Difference between MA and EMA
● Application of multiple moving averages
● Potential buy/sell signals sent by EMA
● Difference between MA and EMA
● Application of multiple moving averages
● Potential buy/sell signals sent by EMA
EMA is a type of moving average that places a greater weight and significance on the most recent data points. It's used to produce buy and sell signals based on crossovers and divergences from the historical average. (Source: Investopedia)
We've summed up three critical points for you:
1. The EMA gives a higher weight to recent prices, while the MA assigns equal weight to all values. The EMA is more sensitive to price movement and provides more timely results than the MA.
1. The EMA gives a higher weight to recent prices, while the MA assigns equal weight to all values. The EMA is more sensitive to price movement and provides more timely results than the MA.
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697215-77777002-android-org.png/bigmoo)
2. A buy or golden-cross signal occurs when a shorter-term EMA moves above a longer-term EMA. A sell signal can be detected when a short-term EMA line moves below a longer-term EMA line.
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697227-77777002-android-org.png/bigmoo)
3. At the indicated point, you can see that in an upward trend: when the price touches the line, EMA signals a support level. The price moves up again. This signal indicates potential buy points.
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697236-77777002-android-org.png/bigmoo)
How to write your post?
Step 1: Select a specific stock
Step 2: Find the EMA indicator on moomoo
Step 3: Set a particular period
Step 4: Read the chart and analyze the price trends
Step 1: Select a specific stock
Step 2: Find the EMA indicator on moomoo
Step 3: Set a particular period
Step 4: Read the chart and analyze the price trends
For example:
I've been researching $XX's price changes recently. Below is how I set up the indicator on moomoo.
I've been researching $XX's price changes recently. Below is how I set up the indicator on moomoo.
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697245-77777002-android-org.png/bigmoo)
I want to compare the EMA20 and the MA20 lines of the stock. The chart shows that the EMA has much smaller time lag than the MA. It is because the EMA line adapts faster to price changes than the MA line, so the former releases signals earlier than the latter.
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697453-77777002-android-compress.png/bigmoo)
After setting them up, you can find the EMA20 and EMA200 lines in the chart. A buy or golden-cross signal occurs when EMA20 moves above EMA200. A sell signal occurs when the EMA20 line moves below the EMA200 line.
![Technical Analysis Challenge Day 3 - EMA](https://ussnsimg.moomoo.com/1647397697463-77777002-android-org.png/bigmoo)
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Where to post?
Post your learning results by clicking on the discussion: Technical analysis challenge: How do you identify trends with moving averages?
Post your learning results by clicking on the discussion: Technical analysis challenge: How do you identify trends with moving averages?
Attention Please:
Mooers who complete all 4 tasks can compete for the $AMC Entertainment(AMC.US$ stock rewards. Please look forward to the last one.
For more details, please click: Get to know MA indicators and post your learning results!
Mooers who complete all 4 tasks can compete for the $AMC Entertainment(AMC.US$ stock rewards. Please look forward to the last one.
For more details, please click: Get to know MA indicators and post your learning results!
Disclaimer: Moomoo Inc. ("moomoo") provides mobile and online technology solutions for securities trading. Moomoo is not an investment adviser or a broker-dealer and it provides neither investment or financial advice nor securities trading services. All contents such as comments and links posted or shared by users of the community are opinions of the respective authors only and do not reflect the opinions, views, or positions of moomoo, its affiliates, or any employees of moomoo or its affiliates. Please consult a qualified investment or tax advisor for your personal financial planning and tax situations.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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steady Pom pipi : Is EMA MA's brother?![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
NANA123 steady Pom pipi : hahaha, of course nope
NANA123 steady Pom pipi : EMA is a type of MA that places a greater weight and significance on the most recent data points. It's used to produce buy and sell signals based on crossovers and divergences from the historical average
steady Pom pipi NANA123 :![](https://emoticon.futunn.com/rich_daily_life/O_29.png)
NANA123 steady Pom pipi : MA includes SMA and EMA.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
steady Pom pipi NANA123 : I need to study it again.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
steady Pom pipi NANA123 : Thank you for your help.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
NANA123 steady Pom pipi : Learn from each other. Hey, hey! Make progress together
Milk The Cow NANA123 : Wow
, the whole family
.
Milk The Cow steady Pom pipi :![](https://emoticon.futunn.com/rich_big_face2/49.png)
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