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Moving Averages (MA) and Exponential Moving Averages (EMA)
Moving Averages (MA) and Exponential Moving Averages (EMA)

Understand how to use the Moving Average and Exponential Moving Average with Capitalise.

Josh avatar
Written by Josh
Updated over a week ago

Moving Average (MA)

The Moving Average, or MA, refers to the Simple Moving Average when used on the Capitalise platform. A moving average is a straightforward average of an asset’s price over a specified period of time.  Please note, the current (open) bar is not taken into account when calculating the moving average; only closed bars are considered.  

How can it be used within the Capitalise Platform?

There are 2 ways to use moving average within Capitalise.  The first is to describe it as you would with natural language.  For example:

Buy 2,000 EUR/USD if the 100-day MA of EUR/USD is below today's open

The second way to use moving average within Capitalise allows you to specify the different properties of the MA within the parenthesis.  For example:

Buy 100 shares of AAPL if AAPL crosses above the Moving Average (50, Day, High)

The following properties can be set for any given moving average: 

Number of Bars (NumOfBars): The number of bars taken into consideration for the calculation of the MA. The maximum number of bars that can be used for a moving average calculation is 200.

Bar Period (BarPeriod): The time interval for which the bars are set for the calculation of the MA.  This can be 1 minute, 5 minute, 15 minute, 30 minute, 1 hour, 2 hour, 4 hour, Day, Week, or Month.

Bar Price (BarPrice): The price you want to base the calculation of your MA.  Choose between the open, close, high, low or Mid of each bar.  Please note: when using the MA in the natural language way you cannot change the Bar Price property.  It will default to the close price.

When you type Moving Average or MA into the Capitalise wizard, these parameters come up for you to set, as shown here:

Exponential Moving Average (EMA)

The Exponential Moving Average, or EMA, is a moving average of an asset’s price over time, but with more mathematical weight put on more recent prices. Please note, the current (open) bar is not taken into account when calculating the EMA; only closed bars are considered.

How can it be used within the Capitalise Platform?

Like the Moving Average, there are 2 ways to use the exponential moving average within Capitalise.  The first is to describe it as you would with natural language.  

For example: 

Sell 1,000 USD worth of AAPL if the 8-minute EMA of AAPL is below previous day high

The second way to use exponential moving average within Capitalise allows you to specify the different properties of the EMA within the parenthesis.  For example:

If the EMA (100, Day, Close) of GBP/USD is above the last day high of GBP/USD buy 10 GBP/USD

Buy 1,000 EUR/USD if the EMA (50, 15m, Close) of EUR/USD is above previous day close

Like the moving average, the following properties can be set for any given exponential moving average: 

Number of Bars (NumOfBars): The number of bars taken into consideration for the calculation of the EMA. The maximum number of bars that can be used for an exponential moving average calculation is 200.

Bar Period (BarPeriod): The time interval for which the bars are set for the calculation of the EMA.  This can be 1 minute, 5 minute, 15 minute, 30 minute, 1 hour, 2 hour, 4 hour, Day, Week, or Month.

Bar Price (BarPrice): The price you want to base the calculation of your EMA.  Choose between the open, close, high, low or Mid of each bar.  Please note: when using the EMA in the natural language way you cannot change the Bar Price property.  It will default to the close price. 

When you type Exponential Moving Average or EMA into the Capitalise wizard, these parameters come up for you to set, as shown here:

This content is intended for informational and educational purposes only and should not be considered investment advice or investment recommendations. Past performance is not an indication of future results. Read our Disclaimer for more details.

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