At 1. MA algorithm only considers the influence of the limited number of days (the parameters of the moving average) from the same day, and does not consider the first few days. EXPMA thinks that all the data in the past have an influence;
2. Two minutes later. MA algorithm thinks that the data of the past few days have the same influence on the fitting value of the day.
EXPMA algorithm thinks that historical data have different effects on the stock price of the day, and the longer the time, the smaller the impact, and the closer the time, the greater the impact (this is a weighted idea).
Similarly, EXPMA also has parameters, and the parameter is time. According to the different timing, expenditure can also be divided into short-term expenditure and long-term expenditure.
Generally speaking, short-term EXPMA is more in line with the stock price trend than long-term EXPMA, but it is not as smooth as long-term EXPMA (all moving average systems have this attribute).
Calculation formula:
Where m is the parameter, and EXPMA on the day of listing is generally taken as the closing price of the day.
From the algorithm of MA and EXPMA, we can know that both of them are the average of stock prices.
But MA (moving average) thinks that the influence of the previous data is the same.
EXPMA (Expma) thinks that the closer the data, the greater the contribution. Therefore, in general, EXPMA is more sensitive to the stock price trend than MA.
The usage of EXPMA is similar to that of MA, and it is also considered from the relationship between stock price and EXPMA, and the relationship between long-term EXPMA and short-term EXPMA.
Mainly to judge the strength of both sides of the market, so as to get the running trend of the stock price and give the buying and selling signals.
These can be understood slowly. For details, please refer to relevant books and systems. At the same time, you can practice with a simulation disk, so that you can master the skills quickly and effectively. Simulation software can look at Niu Gubao. Personally, I feel good There are many indicators in it, and each indicator has detailed instructions. It is very helpful to use. I hope I can help you, and I wish you a happy investment!