Posted by forex at 2:38 AM
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1. Open Excel.
2. Enter or import the historical price data. For example, if you were performing technical analysis of daily price charts, place the closing price for each day in a new cell. Cell A1 contains the first day's closing price of a stock, and subsequent days go in the cells below. One hundred days of data would cover cells A1 through A100.
3. Identify the technical indicator formula you wish to use. For example, consider creating a moving average, the most popular technical indicator used in financial markets. This formula consists of a simple average of prices over a set period of time.
4. Click in cell B10. This is the cell adjacent to the 10th day of price data in cell A10. A moving average requires a minimum number of days to start calculating. Cell B10 allows you to construct a 10-day moving average.
5. Type "=average(A1:A10)" and press "Enter." Note that quotation marks are excluded from the actual formula entry. This formula considers the first 10 days' closing prices and averages them into cell B10. This is the starting point for the moving average.
6. Hover the mouse over the lower right corner of cell B10. The cursor will change to a small black plus sign. Click and hold down on this corner with the left mouse button.
7. Drag the mouse straight down through column B until you arrive at the end of the price data on row 100, and then release the mouse. A moving average technical indicator for 100 days of prices has been created in Excel.