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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: Renko Trading System
This type of chart is applied in technical analysis, which renders movement of the price in the form of diagonal rows consisting from rectangles (bricks). Each new rectangle is always built to the right from the previous one and its location is higher or below the previous Renko rectangle. Mentioned upward or downward movement of price (for example, each 10 points) is marked by adding rectangle below (above) and to the right from the previous one. Upward movement is indicated by a transparent brick whereas downward movement (below previous value) – by a colored brick.
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