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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: besttrader who wrote (25127)	5/26/2001 10:30:02 AM
From: Ian McGuire	Read Replies (1) \| Respond to of 37746

re "simple vs exponential moving averages" a good question knight, with no simple answer especially without getting into alot of mathematical "what ifs?" ma's, of course, are a running sum of closing prices and dividing by the number of bars being averaged(bear in mind they always lag the latest price) to give you a running average over the time period in question. Simple ma's are your basic straight forward average -ie..last 200 closing prices and divide by 200..ema's give more weight and bearing to the most recent bars and herein lies the difference(advantage?) between the two ........a fast paced market will always be well ahead of simple ma's as they are skewed by much earlier price bars....ema's get around this to a certain extent, but are prone to being whipsawed by the market....their highest and best use really depends on your style of trading....fwiw i use ema's as they fit better within my trading timeframes...hope this is of some use....ian