Mov Avg Exponential

Mov Avg Exponential calculates and plots an exponentially weighted average of prices specified by the Price input from the number of most recent bars specified by the Length input. This method of calculating a Moving Average gives greater weight to the market’s most recent price and a reduced weight to older prices. In simple moving average equal weight is given to all the prices in the data series.

A moving average may be used to identify the trend. The market trend may be defined by the direction in which the average is moving and the relative position of prices and the moving average plot. Rising moving average values and prices above the moving average may indicate an uptrend. Declining moving average values and prices below the moving average may indicate a downtrend.

Default Inputs

Price (Close) - price value used in calculation of the moving average.

Length (9) - number of bars to include in the calculation.