Forex encyclopedia

Random article: Exponential Moving Average. EMA Forex, Forex EMA

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.

Popular article: The Pareto principle in trading

According to official sources, the Pareto Principle was named after the economist and sociologist Vilfredo Pareto, who was born in Paris in 1848, but was Italian by nationality. From 1906, he began to notice certain economic patterns. For example, he noted that 80% of the land in Italy belonged to 20% of the population. Then, he formulated the principle, noting that 20% of the pods in his garden contained 80% of the peas. These and other regularities led to the fact that Vilfredo Pareto developed the “80/20 Rule”, which in general form looked as follows: 80% of the effects come from 20% of the causes.

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19.07.2019 New article added «Trade»

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