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A related question: What is an exponential moving average?

April 26, 2017average exponential moving

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A related question: What is an exponential moving average?

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See the seminar on moving averages in the Street Smart School for more details, but an exponential moving average is calculated by applying a percentage of today’s closing price to yesterday’s moving average value, and doing so on a continuous basis. The idea is that by doing so, more weight is given to recent market action and increasingly less to older data.