Posted by forex at 5:18 AM
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1. Determine the period of the EMA that you would like to calculate. Periods that are typically used by traders are the 10-day, 20-day, 50-day, and 100-day EMA.
2. Go to the Yahoo! Finance home page and enter the ticker symbol of the stock that is being evaluated and click the 'GET QUOTES' button. On the next page, click the 'Historical Prices' hyperlink in the left hand column. Record the closing stock price across the previous number of trading days that represent the period as determined in Step 1.
3. Compute the current day's EMA using the following formula where P = stock price, pEMA = previous day's EMA, and N = number of periods:Let Z = 2/(1+N)EMA = (P x Z) + {pEMA x (1 - Z)}The EMA line is formed by plotting several EMA values across time.