30 years: Financial markets trader
In the previous video, Abdulla covered simple or arithmetic moving averages. Here, Abdulla explains a similar concept: the weighted and exponential moving averages. He answers the questions: what are they, how are they calculated and how are they used?
In the previous video, Abdulla covered simple or arithmetic moving averages. Here, Abdulla explains a similar concept: the weighted and exponential moving averages. He answers the questions: what are they, how are they calculated and how are they used?
5 mins 11 secs
The exponentially weighted moving average places differing weights on historic data. The rate at which the weights exponentially decrease is defined as the decay rate.
Key learning objectives:
Understand the difference between a simple moving average and an exponentially weighted moving average
Define the impact the decay rate might have on the output calculation
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