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Using Indicators
EMA2 - The second exponential moving average.
The second part of the study computes an exponential moving
average of the oscillator. You have:
EMAosct = EMAosct-1+ (k * (OSCt - EMAosct-1))
EMAosct - The exponential moving average of the oscillator.
OSCt - The oscillator for the current interval.
EMAosct-1 - The exponential moving average of the oscillator for
the previous interval.
k - The exponential smoothing constant.
Since the second value, EMAosct, is an exponential moving
average, it rises and falls more slowly than the oscillator. Hence,
the two lines generate crossover points. These crossover points
are the buy/sell signals. Review Reading Moving average
Convergence/Divergence Trading Signals for other possible
trading signals.
If the study is displayed as a histogram, each value for the lines is
calculated as:
DIFFt = OSCt - EMAosct
DIFFt - The difference between the oscillator for the current
interval and the exponential moving average of the oscillator.
OSCt - The oscillator for the current interval.
EMAosct - The exponential moving average of the oscillator.
Customizing:
To change the settings of this indicator, open the Program Options
screen by clicking the Program Options button located on the main
Toolbar. See the Program Options section for more details on
changing the settings.
Track ‘n Trade Pro 4.0 User Manual
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