Quick noob question: What is EMA ?

Hello,

Noob question:
what is EMA ?

Where can i find this indicator ? is it the same thing as "SHI Channel" ??

How does one insert EMA 12 or 14 indicator on the chart ?

Thank you

E = Exponential

M = Moving

A = Average


When you insert a moving average from the 'Insert' drop-down box on MT4, you can choose what type of MA you want, of which 'exponential' is one of them.

thanks a lot!

getting closer and closer now ....

EMA means Exponential Moving Average.

To understand difference bw Simple Moving Average Example ( SMA ) and EMA il just take an example of 10 moving average.

10 SMA means the average has been calculated from the last 10 previous prices with equal importance given to all the 10 previous prices.

10 EMA means the average has been calculated from the last 10 previous prices , but the difference is that in EMA more importance is given to the more recent prices.


Hope it helps u !

makes a lot of sense, thanks !

it is NOT the same as the channel and is a standard indicator in MT4

you simply transfer a MOVING AVERAGE to the chart, and in the preferences section of that moving average you can change it to an E moving average and to any value you wish

its just a drag and drop operation.

enjoy and trade well

mp