# fourhourly EMA?

#### mfezi

##### Newbie
Hi,

I am still trying to get to know the jargon when reading reports, etc. Are you able to explain to me what the terms below mean or where I can read more about them?

Here is an excerpt:

"With the 21-fourhourly EMA still above the 55-EMA..." or "Only a crossover of the 21- and 55-fourhourly EMAs would..."

Now I know EMA is Exponential Moving Average. Fourhourly referring to the 4 hour chart perhaps?? But put in its context it doesn't make much sense to me.

Thanks
Scott

Hi,

I am still trying to get to know the jargon when reading reports, etc. Are you able to explain to me what the terms below mean or where I can read more about them?

Here is an excerpt:

"With the 21-fourhourly EMA still above the 55-EMA..." or "Only a crossover of the 21- and 55-fourhourly EMAs would..."

Now I know EMA is Exponential Moving Average. Fourhourly referring to the 4 hour chart perhaps?? But put in its context it doesn't make much sense to me.

Thanks
Scott

it would refer to the 4 hourly timeframe and the exponential moving averages. The 21 would be above the 55 if prices were moving upwards, the 21 being a shorter period length and therefore would be moving up quicker than the 55.
So it makes perfect sense in that context

if the 21 crossed over the 55 to the downside, that too makes sense as it would reflect the change in direction of prices, albeit a late change in prices to the downside

It means that you have two EMA (exponetional moving averages) on chart. 55 and 21 means how many periods backward is incorporated into EMA. For example if EMA3 tri last prices enter into equation (let say 2,4,5) to get result 4.
When you have two EMAs than let say 55 and 21 the last one is responding to price fluctuation faster than 55one (lagging one). When both point same direction we talk about trend. Crossing of two EMAs may signal reversal.

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