Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Whats the difference between a simple and an exponential moving average?

April 26, 2017average exponential moving simple

0

Posted

Whats the difference between a simple and an exponential moving average?

1 Answer

0

Posted

A simple moving average assigns weight equally to all of the price data in the period. An exponential moving average assigns more weight to more recent price data. Exponential moving averages and weighted moving averages tend to combat the lagging effect of moving averages somewhat.