The Most Popular Moving Average, Ranked

Choose the Moving Average you think is the most popular!

Author: Gregor Krambs
Updated on Jul 10, 2024 07:02
In the dynamic world of data analysis and stock market tracking, the effectiveness of various techniques can shift with market trends and analyst preferences. One such technique involves using moving averages, a fundamental tool for smoothing data series and indicating potential trends. Users benefit from seeing which methods are favored by peers, enhancing their strategic toolkit by understanding popular consensus. This site offers a unique opportunity for users to cast votes on their preferred moving averages, actively shaping a current and community-driven ranking. Participating not only broadens one's own analytical perspectives but also aids in presenting a clear picture of current trends and preferences in the community. This feedback loop ensures that the rankings reflect real-time user experiences and preferences, providing a continuously updated resource.

What Is the Most Popular Moving Average?

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    Exponential Moving Average (EMA)

    Exponential Moving Average (EMA)

    Gives more weight to the most recent prices, and therefore reacts more quickly to price changes than the simple moving average.
    • Common Periods: 12-day, 26-day
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    Hull Moving Average (HMA)

    Combines the SMA's simplicity with the EMA's reduced lag, aiming to offer a faster and smoother moving average.
    • Common Periods: Variable
  3. 3
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    Jurik Moving Average (JMA)

    Designed to be smooth and responsive, reducing the noise of market data without lag.
    • Common Periods: Variable
  4. 4
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    Zero Lag Exponential Moving Average (ZLEMA)

    Aims to eliminate the lag associated with moving averages by adjusting the EMA's formula to include a lag reduction component.
    • Common Periods: Variable
  5. 5
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    points

    Triple Exponential Moving Average (TEMA)

    Attempts to remove the inherent lag associated with Moving Averages by placing more weight on recent prices.
    • Common Periods: Variable
  6. 6
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    Simple Moving Average (SMA)

    Simple Moving Average (SMA)

    Calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range.
    • Common Periods: 50-day, 100-day, 200-day
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    Kaufman's Adaptive Moving Average (KAMA)

    Adjusts its sensitivity to price changes, becoming more sensitive during price movements and less sensitive in sideways markets.
    • Common Periods: Variable
  8. 8
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    Variable Index Dynamic Average (VIDYA)

    Uses the Chande Momentum Oscillator as the volatility index to adjust the smoothing period of the moving average.
    • Common Periods: Variable
  9. 9
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    points
    Weighted Moving Average (WMA)

    Weighted Moving Average (WMA)

    Places more emphasis on recent prices than on older prices, but not as much as the EMA.
    • Common Periods: Variable
  10. 10
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    points

    Smoothed Moving Average (SMMA)

    Similar to the EMA, but it takes into account a longer period of time, making it smoother.
    • Common Periods: Variable

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About this ranking

This is a community-based ranking of the most popular Moving Average. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or average is missing, feel free to help improve the ranking!

Statistics

  • 2213 views
  • 0 votes
  • 10 ranked items

Movers & Shakers

Voting Rules

A participant may cast an up or down vote for each average once every 24 hours. The rank of each average is then calculated from the weighted sum of all up and down votes.

Additional Information

More about the Most Popular Moving Average

Exponential Moving Average (EMA)
Rank #1 for the most popular Moving Average: Exponential Moving Average (EMA) (Source)
A Moving Average (MA) smooths out price data to create a trend-following indicator. It helps traders identify the direction of the trend. This tool averages a set number of past data points. The result is a line that moves along the chart, showing the average value over a specific period.

Traders use Moving Averages to filter out noise from random price movements. They can see the underlying trend more clearly. When the price is above the Moving Average, it suggests an uptrend. When the price is below, it suggests a downtrend.

Moving Averages are also used to identify potential support and resistance levels. These levels are areas where the price might struggle to move past. A Moving Average can act as a dynamic support or resistance line.

There are different types of Moving Averages. Each type calculates the average in a slightly different way. The simplest one gives equal weight to all data points. Others give more weight to recent data points. This makes them more responsive to recent price changes.

Traders can adjust the period of the Moving Average. A shorter period makes the Moving Average more sensitive to price changes. A longer period makes it smoother and less sensitive to short-term fluctuations. The choice of period depends on the trader's strategy and the market conditions.

Moving Averages can also be used in combination with each other. Traders often use two or more Moving Averages with different periods. When a shorter period Moving Average crosses above a longer period one, it can signal a potential buy opportunity. When it crosses below, it can signal a potential sell opportunity.

The simplicity of Moving Averages makes them a popular tool among traders. They provide a clear visual representation of the trend. This helps traders make informed decisions. Moving Averages can be applied to any market, including stocks, forex, and commodities.

Despite their usefulness, Moving Averages have limitations. They are lagging indicators, meaning they are based on past data. This can result in delayed signals. They may not perform well in choppy or sideways markets. False signals can occur, leading to potential losses.

Traders often use Moving Averages in conjunction with other indicators. This helps confirm signals and reduce the likelihood of false ones. Combining different tools can provide a more comprehensive view of the market.

In conclusion, Moving Averages are a fundamental tool in technical analysis. They help traders identify trends, potential support and resistance levels, and buy or sell signals. While they have limitations, their simplicity and effectiveness make them a staple in many trading strategies. Understanding how to use them can enhance a trader's ability to navigate the markets.

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