Exponential MA place more weight on recent
prices
The exponential MA is calculated by applying
a percentage of today's closing price to yesterday's MA value
If p
is the percentage applied to today's price then:
MA = p(today's
price) + (1-p)(yesterday's MA)
|
To calculate a 15%
exponential moving average of Vodafone |
MA = 0.15 x 122 + 0.85 x
(yesterday's MA) |
|
|
|
|