Post
Topic
Board Speculation
Re: Goomboo's Journal
by
Crypt_Current
on 07/05/2013, 12:23:04 UTC
Can someone explain, for a non-trader, what do these EMAs stand for? Why 10 and 21 and not 14 and 47? Just curious, I've been watching these averages for the past few days and the accuracy at which they predict where the prices are going next is pretty striking.

Its a moving average from the last X periods where the most recent data is weighted more heavily.

http://www.investopedia.com/terms/e/ema.asp

Great answer on the first, least important part of the question.
The SECOND, arguably more important part, is WHY those PARTICULAR numbers.

The answer is so that Goomboo knows how everyone is trading and can adjust his own trades accordingly.