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Exponential Moving Average

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timetotrade can be used to create Exponential Moving Average Alerts that will notify you by email, mobile phone or instant messenger as soon as your Exponential Moving Average investment conditions are met. Use timetotrade to avoid missing trading opportunities regardless of how busy you are...and when it’s time to trade we’ll let you know!



Click here to start creating your own Exponential Moving Average Alerts >>'



What is an Exponential Moving Average Indicator?

The Exponential Moving Average indicator (EMA) is used to reduce the lagging on the simple Moving Average. This is achieved by applying more weight to recent prices relative to older prices. With weighting applied the Exponential Moving Average will react quicker to recent price changes compared to a simple Moving Average.


On timetotrade's charts, Price is represented by the dark green line and the Exponential Moving Average is represented by a red line. The Exponential Moving Average default period is 12, but you can adjust the default values to find the best fit between the Price movement and the Exponential Moving Average indicator.



Create Exponential Moving Average Alerts

To create an alert, go to the timetotrade Charts page, and enter the ticker symbol for the stock or currency pair that you wish to follow. This will take you to the alert creation page. The system is defaulted to show the Price chart, but once you have set up a timetotrade account you can select your own default settings. Select Exponential Moving Average (or Two Exponential Moving Averages) from the drop down menu and this will show the price chart overlayed with the Exponential Moving Average indicator.


There are six types of Exponential Moving Average Alert Triggers available on the timetotrade system: Rising and Falling Threshold Triggers, Cross-Over Triggers and Break-Out and Pull-Back Triggers (as shown in the diagram below).


To create an alert, just click on the appropriate Trigger Button at the right hand side of the Exponential Moving Average chart. There are no programming languages to learn, no spreadsheets or complex formulas to write. Just click a button, enter your parameters and your alert is created. Simple!


Exponential Moving Average


Click on the Exponetial Moving Average (EMA) "Crossover" Trigger Buttons to create alerts to notify you when the exponential moving average rises above, or falls below the Price. For example, if your trading strategy is based on purchasing stock when the exponential moving average rises above the price, (reference points (a) or (c) on the above 6 month daily interval chart), you could use the Rising Crossover Trigger to notify when your investment conditions are met. If your trading strategy is to sell when the Exponential Moving Average falls below the price (reference points (b) or (d)), you could use the Falling Crossover Trigger to notify you.


Exponential Moving Average
Exponential Moving Average

You can use the Exponential Moving Average (EMA) "Threshold" Trigger Buttons to build an alert to notify you when the Exponential Moving Average rises above or falls below a value defined by you; e.g. in the chart of PSUN shown, if you want to be notified when the daily Exponential Moving Average rises above resistance or falls below support levels and hence signalling a significant change in trending (reference points (i), (j) and (k)), you could use the Rising Threshold Trigger and Falling Threshold Trigger to notify you when these conditions are met.


Exponential Moving Average
Exponential Moving Average

The Exponential Moving Average (EMA) "Percentage Breakout" and "Percentage Pullback" Trigger Buttons can be used to create an alert to notify you when there is a percentage increase or decrease in the Exponential Moving Average within a specified time interval - both of which are defined by you. These triggers are commonly used to notify you when there is a sudden change in momentum such as a stock gapping up or down. For example on the MSFT chart shown, you could have used the Percentage Pullback Trigger to notify you when MSFT gapped low, reference point(m).


More information on how to use the timetotrade system to create Alerts on the Exponential Moving Average can be found on the Creating an Alert pages.


timetotrade can also be used to create alerts on Price and Volume as well as the technical indicators: Stochastic, Bollinger Bands, RSI, MACD and Moving Averages.


Once you are familiar with creating basic alerts you can use timetotrade's advanced features to customise your alerts to suit you. For example, you can build compound alerts containing multiple trigger conditions against price and multiple technical indicators; you can edit the alert message you will receive and you can specify where particular alerts are to be sent: choose email and/or mobile phone or PDA.


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Further Reading



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