Ok, thanks for suggestions...I am using SMA...any major differ..?
what about Alok Industries Ltd...
Enter current price Stoploss is 10..Target is 14>>16>>19.
Dear shreeux ,
the exponential moving average (EMA) gives a higher weighting to recent prices than the simple moving average (SMA) does,
SMA
EX:
I am giving the following series of Prices of a stock :
10, 11, 12, 16, 17, 19,20
SMA Calulation :
10+11+12+16+17+19+20 =105
7days SMA = 105/7 = 15
SMA=15
Most traders will tell you to trade simple moving average crossovers of and the profits will fall from the heavens. Well, unfortunately this is not accurate. Often time’s stocks will tick over or under moving averages to only continue in the primary direction. This will leave you on the wrong side of the market and down on your positions.
EMA
is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as "exponentially weighted moving average"
Exponential Moving Average Calculation
Exponential moving averages reduce the lag by applying more value to recent prices. The weighted value depends on the number of days in the period. There are three steps to calculating an exponential moving average.
• Calculate the moving average.
• Calculate the weighting multiplier
• Calculate the exponential moving average. The formula below is for a 10-day EMA.
SMA: 10 period sum / 10
Multiplier: (2 / (Time periods + 1) ) = (2 / (10 + 1) ) = 0.1818 (18.18%)
EMA: {Close – EMA(previous day)} x multiplier + EMA(previous day).
I am using EMA s in my trading , but If you identified any advantage in SMA, you can use SMA that is your choice ..
Please go through the chart i have mentioned SMA AND EMA
if you observe EMA looks like Smooth condition than SMA
Alok textile