Hi,
I am looking at EURUSD daily chart on Tradingview (Using data from FXCM). I have plotted two Moving Averages (50SMA & 200SMA; applied to “close” prices)
On Tradigview, 200SMA crosses above 50SMA on 22/23 July.
on MT4 :Same cross happened on 12 July.
What is it I am missing here?
I am not sure this is the reason, but the upper chart describes the moving average as MA and the lower chart describes it as SMA. Also, I cannot see from either chart what time duration the bars represent, though they both seem to be days, the lower chart covers a broader range of dates than the upper.
So two questions for clarification:
Does the MA of the upper chart represent a Simple Moving Average, an Exponential Moving Average or another type of moving average? Are the equations that calculate the output of moving average the same? If one plots the date on which the centre average crosses and the other plots the date on which the last component of the moving average that would explain the time shift of one versus the other. I probably have not explained what I mean very well, but you would have to dig down into the documentation provided by FXCM MT4 and that provided by TradingView. Further reading for your analysis:
Hello Mondeoman,
Thanks for your reply.
I believe SMA & MA are both “simple” moving average & hence should be based on same formula.
I shall read through links you have provided & hopefully shall find answer there.
Thanks for your time.