Technical Analysis

Moving Average, Weighted Moving Average, and Exponential Moving Average

Moving averages are favored tools of active traders to measure momentum. The primary difference between a simple moving average, weighted moving average, and the exponential moving average is the formula used to create the average. Simple Moving Average The simple moving average (SMA) was prevalent before the emergence of computers because it is easy to calculate. Today’s processing power […]

Technical Analysis

How to Draw Fibonacci Levels

Fibonacci retracement and extension analysis uncovers hidden support and resistance created by the golden ratio.1 Fibonacci grids prepackaged in most charting programs lay out these price levels, which act like traditional support and resistance but originate in mathematical proportion, rather than the highs or lows on a price chart. Many traders and investors dismiss Fibonacci […]