Open AccessMathematicsEconomics
Frank Klinker
2011.4.1Mathematische Semesterberichte
tlooto Summary
The relation between averages and moving averages and the so called exponential moving average (EMA) is explained and the definition of the most frequently used trend indicator, the MACD is given.
Abstract
In this note we discuss the mathematical tools to define trend indicators which are used to describe market trends. We explain the relation between averages and moving averages on the one hand and the so called exponential moving average (EMA) on the other hand. We present a lot of examples and give the definition of the most frequently used trend indicator, the MACD.
Citation format
KLINKER, Frank. Exponential moving average versus moving exponential average [preprint]. arXiv, 2011. arXiv:2001.04237.