Forex encyclopedia

Exponential Moving Average (EMA) is one of the sorts of simple moving average and is one of the cases of weighted moving average, because not only price values, but weight values as well as used in its measurement. The difference is that price for entire period of observation are accounted, whereas weight is exponentially decreased and is never equal to 0, thereby assigning more weight to new prices. Upon that, exponential smoothing formula is used rather than linear arithmetical or another progression. This exponential smoothing is applied in forecasting number series.
Technical levels are one of the crucial elements of technical analysis on the Forex market. Technical levels represent a certain value approaching which the price faces resistance in further movement. On the chart it is pictured as zone (level), where price went and bounced off later, repeated its movement to the level again and without being able to pass it bounced off. Such approaching and returns can take place on a repeated basis and the more efforts are made, the stronger price level we have.
New in Encyclopedia
Picture of the day
Accumulation Distribution Indicator
Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
Close
Login
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .