1. Moving Average

2. What is Moving Average? Moving averages - popular tools
Low-pass filter data series
spot trends

3. The two most popular moving averages Are SMA and EMA.
Simple Moving Average (SMA)
Exponential Moving Average (EMA)

4. SMA (Simple Moving Average)
Ex: 5 data point window
= 60
SMA = 60/5 = 12
Then next data (6th data) coming)
= 65
SMA =65/5 =13

5. 10 Data SMA

6. Weighted Moving Average
More recent values have
A higher weight
P1 is most recent

7. Denominator
Denominator is a series that comes to (N**2 + N) / 2

8. WMA updates

9. Exponential Moving Average (EMA)
reacts faster than SMA
Lower lag than SMA
recent data has more weight
The most used
MAs are: SMA(10)
SMA(50)
SMA(100) SMA(200)
EMA(20)

10. Formula for EMA
period-based EMA, "Multiplier" is equal to 2 / (1 + N) where N is the specified number of periods.
For 10-period EMA Multiplier is

11. EMA, the sum

12. Example of EMA
For the first period's EMA, the simple moving average was used as the previous period's exponential moving average (yellow highlight for the 10th period).
From period 11 onwards, the previous period's EMA was used. The calculation in period 11 breaks down as follows:
(C - P) = ( ) =
(C - P) x K = x =
((C - P) x K) + P = =

13. EMA why Exponential: