Support, Resistance, Moving Averages PDF

Support, resistance, Moving averages Ing. Radovan Dráb, PhD. Ing. Viliam Vajda, PhD. Support and resistance Support is the price level at which buying is thought to be strong enough to prevent the price from declining further. Resistance is the price level at wh...

Support, resistance, Moving averages Ing. Radovan Dráb, PhD. Ing. Viliam Vajda, PhD. Support and resistance Support is the price level at which buying is thought to be strong enough to prevent the price from declining further. Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. Support Resistance Moving averages  Moving averages Moving average one of the basic instrument in technical analysis. Simple Weighted Triangle Exponential  Simple moving average (MA/SMA) A simple moving average is formed by computing the average price of a security over a specific number of periods. Exponential moving average (EMA) Exponential moving averages reduce the lag by applying more weight to recent prices. EMA1=(recent price* a)+[EMA0*(1- a)] Weight (multiplier) for recent price is a and for previous MA is 1-a in percentage formulation. Calculation of a : a =2 / (time period +1) Exponential moving average (EMA) Exponential moving averages reduce the lag by applying more weight to recent prices. Moving averages Crossovers – Price Crossovers – MA Crossovers Trend identification Support identification Resistance identification Stop Loss, Take profit - identification Crossover with price Multiple averages crossovers Support identification Resistance identification Ribbon Thx 4 att