Hello Guest, if you are reading this it means you have not registered yet. Please take a second, Click here to register, and in a few simple steps you will be able to enjoy all the many features of our fine community. Note that lewd or meaningless nicknames are prohibited (no numbers or letters at random) and please introduce yourself in the section for you to meet our community.
pcm brokers pcm brokers
Results 1 to 7 of 7
  1. #1
    Moderator
    Join Date
    Jun 2013
    Location
    U.A.E
    Posts
    4,346
    Post Thanks / Like
    Credits
    28,050
    My Language
    English

    How Indicators are calculated?

    Dear members
    Hi,

    Here we are going to introduce and talk about how some the most useful indicators are calculated and may be discuss about how they are being used in trading.
    Please be with us

    Be healthy & wealthy
    News Desk

  2. #2
    Moderator
    Join Date
    Jun 2013
    Location
    U.A.E
    Posts
    4,346
    Post Thanks / Like
    Credits
    28,050
    My Language
    English

    EMA - Exponential Moving Average

    EMA - Exponential Moving Average

    Exponetial Moving Average (EMA for short) is one of the most used indicators in technical analysis today. But how do you calculate it for yourself, using a paper and a pen or – preferred – a spreadsheet program of your choice. Let’s find out in this explanation of EMA calculation.



    Calculating Exponential Moving Average (EMA) is of course done automatically by most trading and technical analysis software out there today.

    Here is how to calculate it manually which also adds to the understanding on how it works.


    In this example we shall calculate EMA for a the price of a stock. We want a 22 day EMA which is a common enough time frame for a long EMA.

    The formula for calculating EMA is as follows:

    EMA = Price(t) * k + EMA(y) * (1 – k)
    t = today, y = yesterday, N = number of days in EMA, k = 2/(N+1)

    Use the following steps to calculate a 22 day EMA:


    1) Start by calculating k for the given time frame. 2 / (22 + 1) = 0,0869

    2) Add the closing prices for the first 22 days together and divide them by 22.

    3) You’re now ready to start getting the first EMA day by taking the following day’s (day 23) closing price multiplied by k, then multiply the previous day’s moving average by (1-k) and add the two.

    4) Do step 3 over and over for each day that follows to get the full range of EMA.


    This can of course be put into Excel or some other spreadsheet software to make the process of calculating EMA semi-automatic.

    Goodluck

  3. #3
    Junior Trader
    Join Date
    Apr 2014
    Location
    UK
    Posts
    14
    Post Thanks / Like
    Credits
    260
    My Language
    English
    Quote Originally Posted by PCMNewsdesk View Post
    EMA - Exponential Moving Average

    Exponetial Moving Average (EMA for short) is one of the most used indicators in technical analysis today. But how do you calculate it for yourself, using a paper and a pen or – preferred – a spreadsheet program of your choice. Let’s find out in this explanation of EMA calculation.



    Calculating Exponential Moving Average (EMA) is of course done automatically by most trading and technical analysis software out there today.

    Here is how to calculate it manually which also adds to the understanding on how it works.


    In this example we shall calculate EMA for a the price of a stock. We want a 22 day EMA which is a common enough time frame for a long EMA.

    The formula for calculating EMA is as follows:




    Use the following steps to calculate a 22 day EMA:


    1) Start by calculating k for the given time frame. 2 / (22 + 1) = 0,0869

    2) Add the closing prices for the first 22 days together and divide them by 22.

    3) You’re now ready to start getting the first EMA day by taking the following day’s (day 23) closing price multiplied by k, then multiply the previous day’s moving average by (1-k) and add the two.

    4) Do step 3 over and over for each day that follows to get the full range of EMA.


    This can of course be put into Excel or some other spreadsheet software to make the process of calculating EMA semi-automatic.

    Goodluck

    What about other indicators. Though everything can be found in the wikipedia I would like to get easier and clearer explanation here. Now I trade with MACD and bollinger bands with my broker. Can you explain their origination and ground principles they work on?
    Last edited by Moderator; 10-07-2014 at 04:29 AM.

  4. #4
    Trader
    Join Date
    May 2019
    Posts
    31
    Post Thanks / Like
    Credits
    39
    My Language
    English
    Indicators. Indicators are composed of multiple data elements, and typically consist of a numerator and denominator. Calculated totals do not have a denominator. Indicators are used to calculate coverage rates, incidence and other values are a result of data element values that have been entered into the system.




  5. #5
    Junior Trader
    Join Date
    Apr 2020
    Location
    Bangladesh
    Posts
    12
    Post Thanks / Like
    Credits
    42
    My Language
    English
    Hi,
    First of all thanks for sharing this valuable knowledge.
    I am new on forex trading. I want to know more about forex.

    ""2) Add the closing prices for the first 22 days together and divide them by 22.

    3) You’re now ready to start getting the first EMA day by taking the following day’s (day 23) closing price multiplied by k, then multiply the previous day’s moving average by (1-k) and add the two""

    Actually i understand step 1. But in step two you said devided them by 22, this term i don't understand. And what is the full definition of (k).
    Could you please tell me?

    Thank you..

  6. #6
    Trader
    Join Date
    May 2020
    Posts
    46
    Post Thanks / Like
    Credits
    124
    My Language
    English
    These are good knowledge and help us to know more about the indicators because they are important for trading for many traders that use the indicators in their trading strategies and some traders use it beside another ways of trading to get more confirmation, i like moving average and bollinger bands and stochastic as they are good for trading and give good signals and so this can help for making of successful trading and making of some money, the indicators are required for analysis of the chart and can help for reading of the chart better and so the trader can take more accurate decisions and can be able to find better chances of trading always and so he will be able to succeed and make consistent profits.

  7. #7
    Junior Trader
    Join Date
    Apr 2020
    Location
    Bangladesh
    Posts
    12
    Post Thanks / Like
    Credits
    42
    My Language
    English
    How i calculate my profit perfectly. Does any body know?
    Please tell me.

  8. ARIONFORXtarder
 

 

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Powered by vBulletin® Version 4.2.4
Copyright © 2020 vBulletin Solutions, Inc. All rights reserved.
Credits System provided by vBCredits II Deluxe v2.1.1 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Feedback Buttons provided by Advanced Post Thanks / Like v3.3.0 Patch Level 2 (Lite) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd. Runs best on HiVelocity Hosting.
All times are GMT +4. The time now is 01:05 PM.
CompleteVB skins shared by PreSofts.Com