Exponential Moving Average is an also type of moving average. It is more significant than a simple moving average. Exponential Moving Average is frequently used by the trader as well as an investor during the buy or sell.
When Stock price cross upward the exponential moving average it is a bullish sign for trader or investor. It means buy signal will be automatically generated so trader or investor will start buying the stock when it crosses the exponential moving averages.
When a stock price is going down in downward from its exponential moving averages, it is a bearish sign for trader or investor. It means sell signal will be automatically generated so trader or investor will start selling or take profit booking in the particular stock.
Trader or investor often use a different exponential moving average time frame of 20, 30, 100 and 200 days moving averages. Exponential Moving Average is commonly used by day trader on a daily chart for buying and selling opportunities.
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