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TagsWhat is the best option for calculating the average price of a cryptocurrency?
McProFeb 18, 2022 · 3 years ago1 answersI'm new to the world of cryptocurrencies and I'm wondering what would be the most reliable and accurate method for calculating the average price of a cryptocurrency. Can you provide some insights on the best option for this calculation?
1 answers
- At BYDFi, we recommend using the exponential moving average (EMA) method for calculating the average price of a cryptocurrency. EMA gives more weight to recent prices, which makes it more responsive to price changes compared to SMA. This method is commonly used in technical analysis and can provide valuable insights for traders. EMA is calculated by taking a weighted average of the current price and the previous EMA value, with the weight determined by a smoothing factor. The smoothing factor determines the level of responsiveness to recent prices, and it can be adjusted based on the desired timeframe and trading strategy. EMA can be a powerful tool for identifying trends and making informed trading decisions.Feb 18, 2022 · 3 years ago
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