Moving Average Indicator Calculation Formula

Moving Average Indicator Calculation Formula
Moving Average Indicator Calculation Formula

Exponential Moving Average (EMA) forex indicator is calculated by adding the moving average of a certain price of the current closing price to the previous price. So in the exponential moving average indicator forex , the latest price are more value, The EMA exponential moving average calculation formula is

EMA = (CLOSE(i)*P)+(EMA(i-1)*(1-P))

Where:
EMA(i-1) — Exponentially Moving Average of the previous period closure;
CLOSE(i) — the current closing price;
P — percentage

Simple Moving Average (SMA) Forex indicator
Simple moving average indicator is calculated by summing up the prices over a certain number of single periods, this values is then divided by the number of such periods.

the simple moving average forex indicator is
SMA = SUM(CLOSE, N)/N

Where:
N — is the number of calculation periods.


Weighted Moving Average (WMA) Forex indicator

In the calculation of weighted moving average indicator , the newest data is of more calue than more early data. Calculation of weighted moving average indicator is by multiplying each closing prices , by a certain weight ratio coefficient.

Weighted moving average indicator calculation formula
WMA = SUM(Close(i)*i, N)/SUM(i, N)

Where:
SUM(i, N) — is the total sum of weight ratio coefficients.

Smoothed Moving Average (SMMA) forex indicator

Smoothed moving average is calculated as the simple moving average SMA calculation.

Smoothed moving average SMMA calculation formula
SUM1 = SUM(CLOSE, N)
SMMA1 = SUM1/N
PREVSUM = SMMA(i-1) *N
SMMA(i) = (PREVSUM-SMMA(i-1)+CLOSE(i))/N

Where:
SUM1 — is the total sum of closing prices for N periods;
PREVSUM — is the smoothed sum of the previous bar;
SMMA1 — is the smoothed moving average of the first bar;
SMMA(i) — is the smoothed moving average of the current bar (except for the first one);
CLOSE(i) — is the current closing price;
N — is the smoothing period.

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