hi can someone explain to me the differences in ENGLISH?
thanks
danny
hi can someone explain to me the differences in ENGLISH?
thanks
danny
Read this. Moving average - Wikipedia, the free encyclopedia It’s well explained. Or, in simple terms:
SMA, or Simple Moving Average is an average that gives equal meaning to all historical data. So if you’re calculating the SMA over 10 time periods, it simply adds them all up and divides by 10. So data from 10 periods ago is considered just as important as the data from 2 periods ago.
EMA (Exponential Moving Average) and WMA (Weighted Moving Average) give more importance to recent data than to older data. The method to determine that importance is different. EMA uses an exponential factor (you should know what that is if you’re done high school) while WMA uses a linear factor.
Again, I recommend reading the above link for a better description.