I have a basic question. I hope its not too technical.
I wanted to calculate EWMA. I trade using FXCM's MArketscope 2.0
What I don't understand is how the system calculates the exact values of EWMA using the previous 25 periods.
I wanted to calculate EWMA. I trade using FXCM's MArketscope 2.0
What I don't understand is how the system calculates the exact values of EWMA using the previous 25 periods.
- Does it use open or close prices?
- What is the value of the smoothing parameter?
- Can anyone suggest a way to choose the optimal smoothing parameter?
Any input/help will be appreciated.