Which daily EMA is closest to the 5 week EMA? - Aussie Stock Forums

# Thread: Which daily EMA is closest to the 5 week EMA?

1. ## Which daily EMA is closest to the 5 week EMA?

I like to use the 5 EMA of the WEEKLY closing data as part of my filtering system
...to see if it is moving up or down?

I can calculate this in Excel.. but it’s just a bit fiddly to incorporate with daily data. I’d like to keep my spreadsheet simpler.

Would anyone know which daily EMA is the closest mathematically to a 5 EMA weekly.
Logically it would appear to be the 25 EMA (5 days *5 weeks) but 20 EMA daily sometimes looks closer when I chart them.

Is it calculatable? Or am I trying to compare oranges and apples?

2. ## Re: Which daily EMA is closest to the 5 week EMA?

Originally Posted by cudderbean
I like to use the 5 EMA of the WEEKLY closing data as part of my filtering system
...to see if it is moving up or down?

I can calculate this in Excel.. but it’s just a bit fiddly to incorporate with daily data. I’d like to keep my spreadsheet simpler.

Would anyone know which daily EMA is the closest mathematically to a 5 EMA weekly.
Logically it would appear to be the 25 EMA (5 days *5 weeks) but 20 EMA daily sometimes looks closer when I chart them.

Is it calculatable? Or am I trying to compare oranges and apples?

Your right there is a formula Ive seen it and I saw Roy Larson calculate for metastock the correct code but cant find it.

For me Id use both 20 and 25 and make the condition that X must cross or close below/above both!
That would be pretty damned close.

3. ## Re: Which daily EMA is closest to the 5 week EMA?

Weekly and daily moving averages are not the same thing. Especially weighted ones, like Exponential!

Here is the daily chart of a given security with the 20EMA (daily, thin), 25EMA (daily, thicker), 5EMA (weekly, thickest).

The weekly EMA is best to imagine as a daily EMA where you only consider Fridays closing price. The weightings are therefore completely different than if you had calculated each daily closing price.

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4. ## Re: Which daily EMA is closest to the 5 week EMA?

Addendum: this applies less so to longer term averages. For example the 52 week MA is more correlated to the 250 day MA than the 5 and 20 are.