1. Tips and Tools for Future Market Trading and Investment
Technical analysis
Derivative and Commodity Exchange Nepal Ltd.
DCX Nepal
Tips and Tools for Future Market Trading and Investment

2. Moving Average
A moving average is the average value of a security’s price over a specific period of time.
Moving averages are used to smooth out the “noise” of shorter-term price fluctuations so as to more readily be able to identify and define significant underlying trends.
A Smoothing Device with a time lag

3. Types of Moving Averages
Simple Moving Average (SMA)
Weighted Moving Average (WMA)
Exponential Moving Average (EMA)
Triangular or Central Moving Average (CMA)

4. SIMPLE MOVING AVERAGE
A Moving average simply measure the average price or exchange rate of a security over a specific time frame. For example, 5 day Simple Moving Average is the sum of last 5 days closing/opening price divided by the number of time periods

5. SIMPLE MOVING AVERAGE

6. WEIGHTED MOVING AVERAGE
Weighted Moving Average is a kind of moving average that put more weight on most recent data and less weight on older data. A weighted moving average is calculated by multiplying each of the previous day's data by a weight. To calculate this kind of moving average we have to put a weight of 1 to oldest data and then 2 for next data and so on up to the current price.

7. WEIGHTED MOVING AVERAGE
To calculate 5 day WMA calculates the weight of the first day as below:
Divide the number of each day by sum of the number of days (15) and multiply it by the value of the security (Price). For the last step, you should add all 5 weighted values together (sum).

8. WEIGHTED MOVING AVERAGE
The sum of the number of days = = 15
5 day weighted moving average (WMA) = = 43

9. WEIGHTED MOVING AVERAGE

10. EXPONENTIAL MOVING AVERAGE
An exponential moving average (EMA), sometimes also called an exponentially weighted moving average (EWMA), applies weighting factors which decrease exponentially. The weighting for each older data point decreases exponentially, giving much more importance to recent observations while still not discarding older observations entirely. The graph at right shows an example of the weight decrease.

11. EMA Calculation
The formula for calculating the EMA today can be expressed as follow;
Smoothing Factor (α)
Expanding out EMAyesterday each time results in the following power series, showing how the weighting factor on each data point p1, p2, etc, decrease exponentially:

12. Use Of Moving Average Identifying a trend
Identifying Support and Resistance Levels
Identifying Price breakouts
Measuring Price Momentum

14. Questions and Answers
Open Discussion

15. Welcome to the financial world
Contact Details
Derivative and Commodity Exchange Nepal Ltd.
Mid Baneshwor, Kathmandu
Phone: /
Welcome to the financial world

16. Happy Hunting !!!!!!!!! Happy Trade !!!!!!!!!
DCX Nepal
Your Trading Bank

17. If you can see it, You can Do it
Investment Test
(Should appear circular)
Thank You !!!
4x3
16x9