Types of Silver Moving Averages
There are 4 types of silver trading moving averages:
- Simple silver trading moving average
- Exponential silver trading moving average
- Smoothed silver trading moving average
- Linear weighted silver trading moving average
The difference between these 4 silver trading moving averages is the weight assigned in to the most recent xagusd trading price data.
Simple Moving Average
Silver Simple Moving Average indicator applies equal weight to the silver trading data used to calculate the simple moving average and is calculated by summing up the xagusd trading price periods of a silver chart and this value is then divided by the number of such xagusd trading price periods. For example silver trading simple moving average 10, adds the xagusd trading price data for the last 10 xagusd trading price periods and divides them by 10.
Exponential Moving Average
Silver Exponential Moving Average indicator applies more weight to the most recent xagusd trading price data and is calculated by assigning the latest xagusd trading price values more weight based on a percent P, multiplier that is used to multiply and assign more weight to the latest xagusd trading price data.
Linear Weighted Moving Average
Silver Linear Weighted Moving Average indicator moving averages applies more weight to the most recent xagusd trading price data and the latest data is of more value than earlier xagusd trading price data. Linear Weighted silver trading moving average is calculated by multiplying each of the silver trading closing xagusd prices within the series, by a certain weight coefficient.
Smoothed Moving Average
Silver SMMA Indicator is calculated by applying a smoothing factor of N, the smoothing factor is composed of N smoothing for N xagusd trading price periods.
The silver chart example explained and shown below shows Simple Moving Average, Exponential Moving Average and Linear Weighted Moving Average. The SMMA silver moving average is not commonly used so it is not shown below.
The Linear Weighted Moving Average indicator reacts fastest to xagusd trading price data, followed by the Exponential Moving Average and then the SMA.
SMA, Linear Weighted Moving Average, Exponential Moving Average - Types of Silver Moving Averages - Simple Moving Average, Exponential Moving Average and LWMA
Day Trading Silver with Exponential and Simple Moving Averages
The Simple Moving Average and Exponential Moving Average silver trading moving averages are the most commonly used Moving averages to trade silver. Whereas the Exponential Moving Average silver trading moving average has a more sophisticated method of calculation, its more popular than the Simple Moving Average silver trading moving average.
Simple Moving Average is the arithmetic mean of the closing xagusd trading prices in the xagusd trading price period based on the set time period where each time period is added and then it is divided by the number of time xagusd trading price periods chosen. If 10 is the xagusd trading price period used the xagusd trading price for the last ten xagusd price periods added up then it's divided by 10.
SMA silver indicator is the result of a simple arithmetic average. Very simple and some Silver traders tend to associate with the silver trend since it closely follows xagusd trading price action.
EMA on the other hand uses an acceleration factor and it is more responsive to the silver trend.
The Simple Moving Average silver trading moving average is used in silver charts to analyze xagusd trading price action. If the xagusd trading price action in more than 3 or 4 time xagusd trading price periods the Simple Moving Average then it's an indication that long xagusd trades should be closed immediately and the bullish momentum of the buy silver trade is waning.
The shorter the Simple Moving Average xagusd trading price period the faster it is to respond to xagusd trading price change. Simple Moving Average indicator can be used to show direct information regarding the silver trend of the xagusd trading market and the strength by looking at its slope, the steeper or more pronounced slope of the Simple Moving Average is, the stronger the Silver trend.
The Exponential Moving Average is also used by many silver traders in the same way but it reacts faster to the xagusd trading market moves and therefore it is more preferred by some xagusd traders.
The Simple Moving Average and Exponential Moving Average can also be used to generate entry and exit points when silver trading. These Moving averages can also be combined with Fibonacci and ADX indicators to generate confirmation the silver signals generated by these moving averages.
