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Using Exponential Moving Averages to Predict Stock Price Trends - Coggle…
Using Exponential Moving Averages to Predict Stock Price Trends
Context and Personal engagement
I have intrestest in finance and economics
Curious about the stock maket trends
Question
How can exponential moving averages predict stock price trends?
Context
Show how stock market works
Look into more especific cases
EMA
Mathematical concepts
Explonential functions
EMA
Formula
Graph
Smoothing constant
Rate of price
Exploration Process
Select a real world stock
Calculate EMA for different times
Analyse in a short period of time
EMA vs. stock price graph
Analyse patterns
When does price cross above EMA? Buy signal?
How much lag is present?
Reflection and Conclusion
Does EMA predict trends accurately?
Reflect on strengths and limitations of modeling stock prices
Discuss randomness and unpredictability in financial markets