Skip to main content

Exponential moving average versus moving exponential average

Abstract

In this note we discuss the mathematical tools to define trend indicators which are used to describe market trends. We explain the relation between averages and moving averages on the one hand and the so called exponential moving average (EMA) on the other hand. We present a lot of examples and give the definition of the most frequently used trend indicator, the MACD.

This is a preview of subscription content, access via your institution.

References

  1. Alexander, C.: Timing Techniques for Commodity Future Markets. McGraw-Hill, New York (2003)

    Google Scholar 

  2. Appel, G.: Technical Analysis: Power Tools for Active Investors. FT Press, Prentice Hall, New York (2005)

    Google Scholar 

  3. Hämmerlin, G., Hoffmann, K.-H.: Numerische Mathematik, 4th edn. Springer, Berlin (1994)

    MATH  Google Scholar 

  4. Kaufman, P.J.: A Short Course in Technical Trading. Wiley, New York (2008)

    Google Scholar 

  5. Kaufman, P.J.: Trading Systems and Methods, 3rd edn. Wiley, New York (1998)

    Google Scholar 

  6. Königsberger, K.: Analysis, 6th edn. Springer, Berlin (2004)

    Google Scholar 

  7. Mendelsohn, L.B.: Trend Forecasting with Intermarket Analysis, 4th edn. Marketplace Books (2008)

    Google Scholar 

  8. Pohlschröder, S.: Börse vs. Trader. Colebergh (2010)

    Google Scholar 

  9. Pring, M.J.: Technical Analysis Explained, 4th edn. McGraw-Hill, New York (2002)

    Google Scholar 

  10. Quarteronio, A., Sacco, R., Saleri, F.: Numerical Mathematics, 4th edn. Texts in Applied Mathematics, vol. 37. Springer, Berlin (2007)

    Google Scholar 

  11. Wilder, J.W.: New Concepts in Technical Trading Systems. Trend Research (1978)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Frank Klinker.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Klinker, F. Exponential moving average versus moving exponential average. Math Semesterber 58, 97–107 (2011). https://doi.org/10.1007/s00591-010-0080-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00591-010-0080-8

Keywords

  • Average
  • Trend indicator
  • Chart analysis
  • MACD