EMA Question

[RealMoneyIssues]

What does it mean if a stock is trading above the 20,50,200 EMA but the 20 EMA is below both the 50 and the 200 EMA?

 

[tsptalk]

It probably means the stock just shot up from a short-term oversold condition. Do you have a chart as an example? Also, is the 50 EMA above or below the 200 EMA?

 

[nnuut]

I use the EMA most of the time.

What is the difference between a simple movingaverage and an exponential moving average?

The only difference between these two types of moving average is the sensitivity each one shows to changes in the data used in its calculation.

More specifically, the exponential moving average (EMA) gives a higher weighting to recent prices than the simple moving average (SMA) does, while the SMA assigns equal weighting to all values. The two averages are similar because they are interpreted in the same manner and are both commonly used by technical traders to smooth out price fluctuations.

http://www.investopedia.com/ask/answers/05/SMAvsEMA.asp

 

[RealMoneyIssues]

It probably means the stock just shot up from a short-term oversold condition. Do you have a chart as an example? Also, is the 50 EMA above or below the 200 EMA?

50 EMA is above the 200 EMA

Current stock I am looking at:
Stock Price
50 EMA
200 EMA
20 EMA

200 SMA
Stock Price
50 SMA
20 SMA

Oh, a dividend is involved and that might have something to do with the price fluctuations as the priced dropped pretty dramatically once the dividend was announced...

Sorry, no chart... I am just looking at stocks and trying to understand basic trends using EMA (didn't think about the SMA).