Strange moving average question

So i used to look at a 5 minute chart that looked at the 10 period moving averages. I was wondering how this is calculated. Do they take a price every 5 minutes, and then use 10 of those? I am trying to calculate it on my own, and im having trouble wrapping my head around how i should do that.

Tuneman,

Have loook at this link and it will explain all you need to know.

Moving Averages - StockCharts.com

Yes but that doesn't answer some questions, such as when you are calculating the EMA, for previous EMA do you use the same number until that period ends? For example every 5 mins you take the current EMA and make it your previous EMA, and use the current tick as the new price?

For a ten period MA take the first 10 prices add them all together and divide by 10.

10+20+30+40+50+60+70+80+90+100=550

550/10 = 55 this is your first MA value.
Then drop the first number from the calculation above in this case 10.

Your second MA value point calculated thus

20+30+40+50+60+70+80+90+100+110 = 650
650/10=65 this is your second MA value.

The calculation proceeds as above for all subsequent data points, drop the first point and insert the next value.
The actual MA value is not included in the calculation, only include the price at that time.

The above is for a simple MA.

When calculating a 10 Day EMA the calculation must be performed at least 11 times before you will begin to get an accurate average therefore calculate a simple MA for the first 10 periods as above. Then insert the simple MA value into the EMA calculation at the appropriate place in the formula.

Therefore
SMA1 inserted into EMA calculation repeat this 10 times ie SMA2.....SMA10
By calculation 11 your EMA will begin to converge to the correct value of an EMA this value should then be used for further calculation.


I hope this helps

Nut

Tuneman.

Please don't trade the Stock Market yet. Give it a few years read lots!!!

Is the honourable veteran member addressing me?

Thank you nut, but i must say I dont think that adresses my question. I know the previous ema, so I dont need to do any array math whatsoever. My question was asking when does the current EMA become the old EMA. I can understand how the exact calculation is measured, however lets say i already know the EMA right now. I can calculate the current ema, no problem, but at somepoint the old EMA must change, and become what was the current EMA, no? I am guessing if one was looking at a 20 min chart, it would happen every 20 mins?

Tuneman said:

I am guessing if one was looking at a 20 min chart, it would happen every 20 mins?

Click to expand...

Yup.

Ok one last question, when I am looking at an interactive brokers chart, and I am looking at the time period of 1 hour and "how to show" is set at 3 mins, the 10 and 20 moving averages are different if I change the time period, but they also change if I change the "how to show" selection to 1 min or 2 mins.

I dont get why this is, if I want the 10 period ema, for a period of X, why would the ema change if I change the "how to show" variable.