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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?


To: Bart who wrote (36313)3/8/1998 4:42:00 AM
From: Johnny Canuck  Read Replies (1) | Respond to of 58727
 
Bart,

It depends what you are doing with the averages. EMA's tend to
weight the most recent data more heavily, that is why they tend to
turn more quickly when a change in the trend occurs. If you
are using line crosses of averages to give you a buy or sell signal
I would usually use the EMA. But for support or resistance levels
most people tend to use the SMA. The idea is that the EMA's is
supposed to be more sensitive so they should get you into
and out of a stock earlier than the SMA's. I believe there was an article in the Technical Analysis of Stocks and Commodities magazine that covered the subject a few months ago. You should be able to look
up the issue at this site: traders.com.

Harry



To: Bart who wrote (36313)3/8/1998 9:01:00 AM
From: Patrick Slevin  Respond to of 58727
 
I do not use EMA. I just referred to Pring's book on Market Momentum and he is unclear, to me at least.

Along with what Harry said, the TASC should certainly have an article recently on it.



To: Bart who wrote (36313)3/8/1998 12:25:00 PM
From: j g cordes  Respond to of 58727
 
Bart, using ema or sma or even ama dosen't matter.. they all generate a relative value which one is using to cross another value for sell/buy signals. Its important to consistently use one and try to optimize values based on the individual stock or index's apparent cycle and typical trend range.

One idea is to forward weight a moving average so that you increase by a small amount the current price action. This will let your crossovers tip more quickly when volatility increases.

Jim