What is the advantage of calculating the percentage amount of a Exponential Moving Average crossover?
By calculating the percentage instead of just a yes/no that the fast EMA is over the slow EMA, you can rank and sort by the crossover pair and as a result you can compare ETFs more effectively. In the chart below, EMA 30 is 47.46 on Sept 10, while the EMA 15 is 50.56. The percent we show is the result of dividing 50.56 (EMA 15) by 47.46 (EMA 30) less 1 or 6.5%. On Aug 24, by contrast, the corresponding difference would be close to zero. As AGQ trends upward, the value of EMA15/EMA30 increases. Conversely, when it peaks and trends downward, the number would decease to zero and then turn negative.
