I have a question for you all. When I backtest my EMA cross strategy, I get widely different results when trying open, close, high and low setting on the EMA periods. Although I do understand the difference between the settings itself, I can’t get my head around the actual changes this makes to my EMA cross strategy…
Can someone explain this to me in simple language?
Take a look at various candles or OCHL bars, ie doji, pin bar, etc. where are the open close high low on each. Therefore where will the EMA be plotted for each of these different bars, could be next to each other on the doji cross, H,L,O & C
or at either end of the bar, on a long day.
That is why it is normally calculated on the close.