ExpAverage ( IDataHolder data , int length );
Default values:
length: 12
Description
Returns the exponential moving average (EMA) of data with length.
The formula for the calculation of the exponential moving average is recursively defined as follows:
EMA1 = price1;
EMA2 = α*price2 + (1 - α)*EMA1;
EMA3 = α*price3 + (1 - α)*EMA2;
EMAN = α*priceN + (1 - α)*EMAN-1;
where α is a smoothing coefficient equal to 2/(length + 1).
Note that in thinkScript®, exponential moving averages use prefetch, see the Past Offset and Prefetch article for details.
Input parameters
| Parameter | Default value | Description |
|---|---|---|
| data | - | Defines data for which the average is found. |
| length | 12 | Defines period on which the average is found. |
Example
input price = close;
input length = 12;
plot ExpAvg = ExpAverage(price, length);
The example plots an exponential moving average of a security's Close price.