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Is there a Definitive Guide for MA's and EMA's?

SCAlchemist
SCAlchemist ✭
in Using Technical Analysis
I find MA's and EMA's simple, but fascinating in showing where the stock is, where it has been and where it is heading. I see it as the vapour trail from a jet.

Is there a Definitive Guide or Book on this topic? I find that, in trying to predict the future outcome of a chart, the predictive value of Moving Averages, depend on the slope of the Moving Averages and their values need to be changed, depending on their slope, to try to see where a stock value may go next.

Comments

  • Kevo
    Kevo ✭
    I'm not sure about a definitive guide, but the SCC ChartSchool article is good: Moving Averages - Simple and Exponential. Also, I've learned a lot on my own.

    See the post Moving Average of a Moving Average on this board. I explain what MAs mean as overlays.

    MAs do not have forecasting or predictive value. They are lagging. They are used to confirm a trend. Price crossing a short-term MA can be good signals. MAs work as Support/Resistance. I have learned to divide MAs up into the 3 major time frames.

    What I find interesting is that several momentum indicators use MAs in their calculation.

    Thanks to computers we have MAs. In the past, it was too much calculation work to do manually.

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