Tech Analysis To Identify Trend Using Exponential Moving Average - EMA ๐ Day 3 (AMC As Example)
Previous posts:
Milk The Cow :Tech Analysis To Identify Trend Using Moving Average - MA ๐ Day 1 (AMC As Example)
Milk The Cow :Tech Analysis To Identify Trend Using Moving Average - MA ๐ Day 1 (AMC As Example)
What isย Exponential Moving Average (EMA)?
It's a type ofย Weighted Moving Average (WMA)ย that gives more weighting or importance to recent price data.
It's a type ofย Weighted Moving Average (WMA)ย that gives more weighting or importance to recent price data.
EMA is something like the modified version of Simple Moving Average (SMA).
FORMULA:
โEMA=Price(t)รk+EMA(y)ร(1โk)
where:
t=today
y=yesterday
N=numberย ofย daysย inย EMA
k=2รท(N+1)โ
Blah blah blah...![]()
![]()
= ![]()
Hmm...
, very chim (profound) eh...
As mentioned is my previous post (Day 2), u does not require to know the calculation to use EMA as moomoo apps has already done those for us
.
Though it's good to know for knowledge.
(I read the formula before in the past, but already forgotten
)
Hmm...
As mentioned is my previous post (Day 2), u does not require to know the calculation to use EMA as moomoo apps has already done those for us
Though it's good to know for knowledge.
(I read the formula before in the past, but already forgotten
So how we use EMA on stocks?
Check out @Meta Moo post first:
Meta Moo :Technical Analysis Challenge Day 3 - EMA
(He getting better & better in the explanation
![]()
)
Check out @Meta Moo post first:
Meta Moo :Technical Analysis Challenge Day 3 - EMA
(He getting better & better in the explanation
Tips:
EMA is usually use for a short term price movements prediction as it's one of the better indicator for it.
EMA is usually use for a short term price movements prediction as it's one of the better indicator for it.
EMA is designed to see price trends over specific time frames, such as 50 or 200 days.
P1:
(Let's use the 50 & 200 days time frames.
To do that, let's change the EMA setting in which I'd mentioned the ways in the previous post [Day 1] )
(Let's use the 50 & 200 days time frames.
To do that, let's change the EMA setting in which I'd mentioned the ways in the previous post [Day 1] )
![Tech Analysis To Identify Trend Using Exponential Moving Average - EMA ๐ Day 3 (AMC As Example)](https://ussnsimg.moomoo.com/1647408440482-random8929-101642595-android-compress.jpg/bigmoo)
P2:
(We do not need so many EMAs = Just tick 2 of them as shown below the picture... the rests are just temporary junks
.)
Inputs:
EMA1 = 50
EMA2 = 200
(We do not need so many EMAs = Just tick 2 of them as shown below the picture... the rests are just temporary junks
Inputs:
EMA1 = 50
EMA2 = 200
![Tech Analysis To Identify Trend Using Exponential Moving Average - EMA ๐ Day 3 (AMC As Example)](https://ussnsimg.moomoo.com/1647408440612-random8385-101642595-android-compress.jpg/bigmoo)
P3:
(Now, what we all are waiting for...
AMC! yay!!!![]()
)
(Now, what we all are waiting for...
AMC! yay!!!
![Tech Analysis To Identify Trend Using Exponential Moving Average - EMA ๐ Day 3 (AMC As Example)](https://ussnsimg.moomoo.com/1647409107920-random9144-101642595-android-compress.jpg/bigmoo)
Orange curve = EMA1
Blue curve = EMA2
EMA1 > EMA2 = Possible up trend
(Green circling)
Note:
EMA1 intercepts EMA2 = Signal "Buy" for P3
Blue curve = EMA2
EMA1 > EMA2 = Possible up trend
(Green circling)
Note:
EMA1 intercepts EMA2 = Signal "Buy" for P3
P4:
(Let's look at the vi-versa of EMA
)
(Let's look at the vi-versa of EMA
![Tech Analysis To Identify Trend Using Exponential Moving Average - EMA ๐ Day 3 (AMC As Example)](https://ussnsimg.moomoo.com/1647409108043-random4630-101642595-android-compress.jpg/bigmoo)
EMA1 < EMA2 = Possible down trend
(Yellow circling)
Note:
EMA1 intercepts EMA2 = Signal "Sell" for P4
(Yellow circling)
Note:
EMA1 intercepts EMA2 = Signal "Sell" for P4
P5:
WAITโ!
ย ย ย .
ย ย ย .
ย ย ย .
ย ย ย .
ย ย ย .
Is there even one?![]()
Just giving a piece of tip as fellow investors:
If u are a long-term stock holder & u are confident with ur calculations of valuation, short-term time frame indicators may not be suitable for u![]()
![]()
WAITโ!
ย ย ย .
ย ย ย .
ย ย ย .
ย ย ย .
ย ย ย .
Is there even one?
Just giving a piece of tip as fellow investors:
If u are a long-term stock holder & u are confident with ur calculations of valuation, short-term time frame indicators may not be suitable for u
As always, DYODD first before investing![]()
Edited:
Next update of posts sequence (event):
Milk The Cow :Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC A...
Next update of posts sequence (event):
Milk The Cow :Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC A...
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.
.
.
.
I'm supposed to be the student here
Well, I maybe a professor
Doing my own research
I preferred the term "mad scientist"
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