The above picture from the EasyTrade trading platform shows the Slow EMA and Fast EMA in the EURUSD H1 chart time frame.
In this example, the EMA 50 is the fast-moving average, and EMA 200 is the slow moving average. Whereas EMA 200 calculates the past 200 periods. The slow-moving average responds with a lag as it calculates a longer period.ĮMA 50 is an Exponential moving average calculated for the past 50 periods. If the moving average uses a longer period to calculate the average, it is the slow moving average. It is very responsive to recent price changes here with EasyTrade charts. The moving average calculated using shorter periods is a fast-moving average. There are two types of moving averages based on the period of calculation. The following are the abbreviations of the moving averages. Simple averages, Exponential moving averages, Smoothed moving averages, and Linear weighted moving averages. There are four different types of moving averages. The calculation uses either the opening price, closing price, the high or low price. There are various methods to calculate the averages. The trader can now see the trend without those fluctuations. The moving averages filter small fluctuations in the price. Traders use the moving average to reduce price fluctuations or noise. The Charts display them as time progresses.
#200 EMA VS 200 MA SOFTWARE#
The software calculates them and plots them in the graph. Moving averages are the average prices for the past X number of periods. Many features of the moving averages make them one of the go-to tools for traders of all levels of experience. The moving averages provide the traders with visual clues on the chart. They also perform in all trading instruments and timeframes. And also to predict future price movements. Technical traders use mathematical tools to understand the current price movements. They are the favorite indicator of most technical traders.
Most traders use Moving averages to analyze the charts. Best trading strategies if the EMA 50 crosses 200 EMA