This confirms the authors' opinion. That is, if a method of entering the deal is based on obscure calculations, there are more negative consequences of its application than positive ones. The future trade is rather art than a science. The mathematical refinement of a method does not guarantee profits. Such conclusions makes a true shock for those who neglect the problem of MA - for those who just prefer to replace simple MA by

Forex Libra Code exponential-, smoothed- and linear-weighted ones. In particular, this concerns E. Neiman. The latter, in "Trader's small encyclopedia", persistently (strongly) recommends to apply the exponential MA (EMA). He states that simple MA to times reacts to one change in the course. Figuratively speaking, the simple MA (SMA) "barks" as a dog. For the first time this happens when a new value is received. For the second time the "barking" is heard when this value is quit from the calculation of MA. As compared with SMA, EMA reacts to the change in one value of the course just once - i.e., when this value is received. This is why EMA is preferable. Comments.

As the charts given below indicate, MA crosses the price 11 times. However, where did E. Neiman see dogs who cannot "bark" more than once or twice? One can imagine how many traders have lost their deposits due to the recommendations given by E. Neiman . The charts submitted below confirm my statements. Everybody can compare SMA with EMA in order to independently answer the following question. Is it preferable to apply rather EMA than SMA (as E. Neiman insists)? Or the difference between these indices is minimal? As one can see, analysts of Forex just play with exponential-, smoothed- and linear-weighted MA. In practice, various "improvements" in SMA do not heighten the working trader's profits. Both J. Murphy and Hockhaimer were perfectly correct in pointing out the difference between SMA and EMA. At the same time, they have not drawn the principal conclusion that one can easily make issuing from the statistics submitted by these authors. That is both types of MA just slightly differ one from another. Besides, the same drawbacks are inherent in the both variants of MA.

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