Am happy to join in this weeks assignment. ## Homework Define in your own words what are simple moving averages and exponential moving averages. Explain how simple and exponential moving averages are calculated Briefly describe at least 2 ways to use them in our trading operations. What is the difference between simple moving averages and exponential moving averages (Explain in Detail) Define and explain in your own words what "Fibonacci Retracements" are and what their gold ratios are Practice (Only Use your own images) It shows step by step how to add a "Simple and Exponential Moving Average" to the graph (Only your own screenshots - Nothing taken from the Web). Use "Fibonacci Retracements" to chart a bullish and bearish move (Own screenshots only - Nothing taken from the web). ![image.png](https://cdn.steemitimages.com/DQmNniD4SDjPeJbLkCojJrbj2fqtSjFUcTGcDjMdd7UwqWZ/image.png) ## My entry ># Define in your own words what are simple moving averages and exponential moving averages. ### simple moving average Simple moving average is a stock average closing price that occurs over a particular period of time and it is called moving because it changes as cryptocurrency price changes and it is also a core indicator in technical analysis,it dictates the uptrend and the downtrend. More to that simple moving average helps to determine the direction of which stock price is moving base on the older price thi it can not predict the future price.it is represented with a line that averages the closing price of each interval or a certain frame of time. ### Exponential moving average Exponential moving average is also a core indicator in technical analysis that is used to check cryptocurrency price and it focuses most on recent price,unlike SMA EMA doesn't keep old data and its moving more faster that is why traders prefer using it because it helps to confirm cryptocurrency prices depending on how the trader uses it.and it helps the investors to make a better decision. ># Explain how simple and exponential moving averages are calculated ## Simple moving average Simple moving average relies on past price of certain period so the opening and the closing price is involved in the calculation of SMA . So we add up a certain cryptocurrency price and divide it with the total number of the same period Eg .SMA= Day1 =10 Day2 =12 Day3=13 Day4=18 Day5=20 We added up the prices 10+12+13+18+20=73/5=14.60. ## How to calculate EMA You must calculate the multiplier for smoothing (weighting) the EMA, which typically follows the formula: [2 ÷ (number of observations + 1)]. For a 20-day moving average, the multiplier would be [2/(20+1)]= 0.0952. Finally, the following formula is used to calculate the current EMA: EMA = Closing price x multiplier + EMA (previous day) x (1-multiplier) ># Briefly describe at least 2 ways to use them in our trading operations. * Moving average is used for trading to dictate uptrend and downtrend. * Moving trend are used as a dynamic resistance and support. ># What is the difference between simple moving averages and exponential moving averages (Explain in Detail) * EMA puts higher weight on recent price. * EMA calculation is based on recent price and doesn't save data like SMA and its quicker. * SMA uses the data of a specific period of time for calculation. * Because of slow movement of SMA it helps the traders to continue even when there is hiccup,while EMA leaves the market because of its fastness. ># Define and explain in your own words what "Fibonacci Retracements" are and what their gold ratios are. Fibonacci Retracement happens to be horizontal lines thats shows were Resistance and Support occurs in a chart they are based on Fibonaccib sequence numbers associated with percentage. More to that Fibonacci Retracement levels connect the high and the low point in a traders view. Fibonacci sequence number are 0,1,1,2,3,5,8,13,21,34,55,89,144. Then to get the Golden ratio we have to divide any number in the series with the number following it to get ratios like 23.6%, 38.2%,50%,61.8% and 100%. ![image.png](https://cdn.steemitimages.com/DQmNniD4SDjPeJbLkCojJrbj2fqtSjFUcTGcDjMdd7UwqWZ/image.png) ># Practice (Only Use your own images)It shows step by step how to add a "Simple and Exponential Moving Average" to the graph (Only your own screenshots - Nothing taken from the Web). ## Step 1. Go to a cryptocurrency chart,and click indicator. ![Screenshot_20210728-174532_2.jpg](https://cdn.steemitimages.com/DQmY1nkkvQBQR77GWCqA9wkYBNis6TBqtxbsGPbUhrpJfGR/Screenshot_20210728-174532_2.jpg)tradeview screenshot ## Step 2. Search for Exponential moving average ![Screenshot_20210728-163005_3.jpg](https://cdn.steemitimages.com/DQmaaRMd3nvjBNbdYTSXY2sdjx2cWd3FujxD8cgcfvBBAD1/Screenshot_20210728-163005_3.jpg)tradeview screenshot ## Step3, Click it ![iMarkup_20210728_215112.jpg](https://cdn.steemitimages.com/DQmS6D9YAMPKV45sseiS1NDu5DPm9rWiKr93i6zSgwGg5kw/iMarkup_20210728_215112.jpg) tradeview screenshot ## Step 4 If we want to add 50 EMA then we click the setting icon and reset it to 50 as shown below in my charts: ![iMarkup_20210728_223152.jpg](https://cdn.steemitimages.com/DQmR5dXqDJL9ComDYiogDrezpjhqmcqfisbeowNEjHovPSZ/iMarkup_20210728_223152.jpg) tradeview screenshot Same way on SMA,go to the indicator icon and search for moving average,then go to setting icon and set the number. ![iMarkup_20210728_223924.jpg](https://cdn.steemitimages.com/DQmRFDkTCGUCsxeNGVNoBDG8npyWfSBaWvuPspi5cvtHdgT/iMarkup_20210728_223924.jpg) tradeview screenshot of SMA and EMA ># Use "Fibonacci Retracements" to chart a bullish and bearish move (Own screenshots only - Nothing taken from the web). Step 1 Go to a tradeview.com click the icon ![iMarkup_20210728_231114.jpg](https://cdn.steemitimages.com/DQmPxn2qZd8BEcWmwLRMYdqFU542G9eaSQP87cJdfK2GuRd/iMarkup_20210728_231114.jpg) ![iMarkup_20210728_215926.jpg](https://cdn.steemitimages.com/DQmYyC3c5TrdGzZG9eexhW7bSNkzr915w69m3JW5Tq3QKo8/iMarkup_20210728_215926.jpg) ![iMarkup_20210728_213311.jpg](https://cdn.steemitimages.com/DQmS11Xh1LUtSUhn2ZxfqPmsDfSEAPTsioF9Vv56gr4WGEZ/iMarkup_20210728_213311.jpg) Then draw a line from the lowest price to the highest price ![iMarkup_20210728_230642.jpg](https://cdn.steemitimages.com/DQmYQbDsoztYSLGgxSXMaxCsCrvt1fwXPp7FoDxJtPHC4pB/iMarkup_20210728_230642.jpg)tradeview screenshot bullish move Similarly, on the bearish move,draw the the line to the opposite ![iMarkup_20210728_230749.jpg](https://cdn.steemitimages.com/DQmQNzPmWgRxZTZNie5tnwXzNfrtsmM6Gzkdc49GG2wqRzq/iMarkup_20210728_230749.jpg)tradeview screenshot bearish move ## Conclusion I have come to understand what simple moving average and exponential moving are,tho exponential moving average is faster but because it doesn't serve previous data,i will prefer making use of simple moving average,i also learned the differences and how to calculate them. This was indeed an interesting lesson. Thank you @lenonmc21. Am still your humble student @beautybb