Simple Moving Averge Strategy by xoussamachoubix

By xoussamachoubix

Performance Metrics

Description

Simple Vs. Exponential Moving AveragesFormula for Exponential Moving Average (EMA)\begin{aligned} &\begin{aligned} EMA_{\text{Today}}=&\left(\text{Value}_{\text{Today}}\ast\left(\frac{\text{Smoothing}}{1+\text{Days}}\right)\right)\\ &+EMA_{\text{Yesterday}}\ast\left(1-\left(\frac{\text{Smoothing}}{1+\text{Days}}\right)\right)\end{aligned}\\ &\textbf{where:}\\ &EMA=\text{Exponential moving average} \end{aligned} ​ EMA Today​ =​ (Value Today​ ∗( 1+DaysSmoothing​ ))+EMA Yesterday​ ∗(1−( 1+DaysSmoothing​ ))​ where:EMA=Exponential moving average​ While there are many possible choices for the smoothing factor, the most common choice is:

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