Exponential Moving Averages


  • Some software vendors use a time period instead of a percentage.  In this case use the following formula to convert the percentage to time period

exponential_MA_convertion.gif (1295 bytes)

To calculate the time period of a 15% exponential moving average

time period = (2 / 0.15) -1 = 12.3 days

exponential_MA.gif (5639 bytes)