General Moving Average Questions

[cpatte7372]

Hello All,

I'm a newbie and I was just wondering why some traders use the 15EMA and the 10EMA on the same chart. Any explanation would be appreciated.

Also, can anyone tell me advantages/disadvantages of using the EMA instead of the Simple Moving Average.

Cheers

Carlton

[MR]

Not real sure why some traders use the 15EMA and the 10EMA on the same chart? Maybe a preference issue?

A moving average shows a trend. The lower the moving average value the closer the moving average is to a price bar, and the shorter a trend. If you use a lower value, such as 15 and 10 EMA settings, you should have shorter trends. The moving average crosses the data bar quicker with these settings? Sometimes one might use two moving averages with similiar settings because breaking two trendlines has stronger implications for a possible change-in-trend than just breaking one moving average.

An exponential moving average works similiar to the standard moving average. The exponential moving average just puts more weight on the more recent prices.

[LucasE]

Hi EVERYONE, new to this forum,

I have been thinking about one thing... is there any software that calculates the best two moving average setting for let's say one stock or futures chart. I am looking for a stuff that gives you the best setting for MAs, also shows you profit - for example, thing that shows you that for period from 1-01-2003 to 31-12-2005 the best EMAs for trading daily Goog moving avg crossover strategy was ema 13 and ema 26, and the profit was .... $

Thank you,

Luc

[trader123]

LucasE,
Devergence software has a several studies already built that will optimize several indicators. Like RSI, CCI, MACD, and more.

http://www.sr-analyst.com/studies.htm

They may have what you are looking for.

Russ