## Long Term more than 3 Months with Using Ema

Womanforex Posted 13 Apr. in #Ema #Sma #Moving Average #Long Term Position #Ema Formula #Ema Example For MetatraderLONG TERM MORE THAN 3 MONTH WITH

USING APPLICATION THE SHIFT AND THE PERIOD IN

SMA FOR EMA

Continuing for writing for the other parts from Simple Moving

Average (SMA), most the traders use like Exponential Moving Average (EMA). This

indicator is very simple, and we can use for the Shift and the Period like been

explained in the before Article (Simple Moving Average (SMA), for instance for

trading monthly, with Pips (Lot) equals 2, the best period we can use it is

12), so only one way for looking more the Period and the Shift in EMA?

Ussualy, the general Formula for EMA as below

EMA = Pr + {C *

(Price Now- Pr)}

where,

EMA = Exponential

Moving Average

Pr = The Previous

Period Exponential Moving Average

C = The Smoothing Constant,

where is derived from the time period selected by individual, and ussualy

following with the C = 2/n+1, where n is the period selected.

Furthermore, for

explaining how to look for “Pr” depends on the assumption what we make, take a

look for the example below.

Example 1 :

We make for Pr = 50,

so with the monthly Trading. Based on the before Article, for one month

Trading, we can choose n=12, so that we can get for C = 0.153846153, take for C

= 0.15. Assuming too, we trade with currency Euro-Usd, and assume too, we see

for the Price Now is 1.3000, so for the EMA is 42.695, and we can make it as

42.

Choosing the Value

of Pr is very difficult, every trader has the own decision when have to choose

the Value of Pr, different Value of Pr will have the effect different of the

chart for EMA. But the problem is can we use The Value of Pr by taking The

Period ?

EMA = Pr + {C *

(Price Now- Pr)}

See again the General Formula as

mentioned above, if we assume that The Value of Pr will be the same like The

Period, the General Formula above will become :

EMA = Pr + {C *

(Price Now- Pr)}

Because with

assuming that The Value of Pr will be the same with The Period, it means that

Pr=n, and we can get :

EMA = n + {C *

(Price Now- n)}

where,

EMA = Exponential

Moving Average

n = The Period

Exponential Moving Average

C = The Smoothing Constant,

where is derived from the time period selected by individual, and ussualy

following with the C = 2/n+1, where n is the period selected.

Example 2 :

We make so with the

monthly Trading just like in example 1. Based on the before Article, for one

month Trading, we can choose n=12, so that we can get for C = 0.153846153, take

for C = 0.15. Assuming too, we trade with currency Euro-Usd, and assume too, we

see for the Price Now is 1.3000, so for the EMA is 10.395, and we can make it

as 10.

Based on Example 1

and Example 2, both of them will be different with The Value of EMA, so it will

have the different in the Chart for EMA(will be explained more in the last),

and for choosing where is the best one for using in EMA, it depends on 2 types

like :

1.

The Assumption We Want to Make for The Value of Pr

2.

The Type of Our Trading, Monthly Trading, Daily

Trading, Hourly Trading (can be like 5 Minutes, 15 Minutes,…, 4 Hour)

Now how to use in Meta,

see again in Example 1, and see again in my First Article in part a. Using the

n=12, for The Period and The Shift and then Choose Pr=50, with the Price

1.30000, now see the picture about the real of Trading, using the MT 4 DF MARKET, with

Euro-Usd, here the Step :

1.

Choose The Indicator Moving Average

2.

Choose The Exponential

3.

Fill The Period and The Shoft, with n=12

4.

Fill the Apply For, I prefer choosing one for Close

(Blue Line), and one for Low (Red Line),

and the last

5.

Choose The Time Frame MN

Note : We can get

the EMA is 42

PICTURE 1

So, From the picture above, we can know that with using Exponential moving

Average (EMA) and enjoying it the long term, more effective using EMA, and we can know from the picture it came from

2011 until now with using this data from part a, and Example 1 above the

Application of the Simple Moving Average.

The value of 42, it means that The Exponential Moving Average will be in

the as long as 42 days, or in other word, can be more one month till now

Next week, we will see the reason why choose the price 1.30000, wait for

the next writing