Moving Averages (EMA / MA)

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  • The reason for calculating the moving average of a stock is to help smooth out the price data over a specified period of time by creating a constantly updated average price.
  • A simple moving average (MA) is a calculation that takes the arithmetic mean of a given set of prices over the specific number of days in the past; for example, over the previous 15, 30, 100, or 200 days.
  • Exponential moving averages (EMA) is a weighted average that gives greater importance to the price of a stock on more recent days, making it an indicator that is more responsive to new information.

Recently Dan was helpful explaining things to us on our Discord server “Ace of Trades” :

I primarily focus on EMA14 crossing MA50 and MA50 crossing MA200. EMA relates to fast jumps well, so when EMA 14 crosses MA50, it shows some some good signs of fast move of course with volume. That’s just me though

A prime example is FTFT which was on Dan’s watch list around 1.25 before jumping over $2.
EMA14 MA50

Stock EMA14

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