One of the best and most useful technical analysis tools in the market once you have mastered how to use it is exponential moving average. This tool is a great indicator of the strength of the market and measuring price trends. Moving averages specifically reflects the average price of an asset over various time frames.
Because of its potential to be controlled, Exponential Moving Average is ideal for use in technical analysis. The data generated by the Exponential Moving Average can be used to measure trends when it is compared with prices. This is why recent date is considered a stronger point to base trades on when utilizing exponential moving averages. They are widely considered more accurate and powerful indicator than regular moving averages because the latter tend to regard all the data as having the same value.
An exponential moving average technical analysis usually deploys a thirty day exponential moving average and its correlation with a set of two timeframes. The two time frames are usually not the same and the first one is always longer than the second one. If a trader is utilizing a twenty-four hour price chart
Read more ... source: NewsBTC USA
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