> SC = Smoothing Constant
>
> Today's EMA= ((Today's price) * SC) + ((Yesterday's EMA) * (1 - SC))
>
> If the above is correct, then why do people talk of a "40-day" ema?
The convention is
SC = 2 / (#days + 1)
That formula gives a smoothing and lag similar to a simple average with
the same #days.
--
Dennis
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