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Testing EMA Indicator for the Currency Pair EUR/USD


Affiliations
1 College of Entrepreneurship and Law, Prague, Czech Republic
 

The aim of this paper is to verify the effectiveness of EMA indicator according to selected time intervals. The underlying assumption is that, on longer timescales EMA is profitable and provides more relevant signals. The second objective of this paper is to test the signals of indicators in different months. It is believed that in September and January the number of trading signals on this indicator will increase. Testing will be done on the five-minute time frame. The test will be subjected to 65,000 rate values of the EUR / USD currency pair. Effectiveness of the analysis will be evaluated on the basis of digital (binary) option. Business strategy is based on EMA crossover indicator of current exchange rate. By the contribution there were confirmed hypotheses about more profitable signals when selecting a greater timeframe breadth of moving average. There was also confirmed an increased amount of signals in September, but not in January.

Keywords

Digital Option, Technical Analysis, Forex, Exponencial Moving Average.
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  • Testing EMA Indicator for the Currency Pair EUR/USD

Abstract Views: 74  |  PDF Views: 13

Authors

Andrea Kolkova
College of Entrepreneurship and Law, Prague, Czech Republic

Abstract


The aim of this paper is to verify the effectiveness of EMA indicator according to selected time intervals. The underlying assumption is that, on longer timescales EMA is profitable and provides more relevant signals. The second objective of this paper is to test the signals of indicators in different months. It is believed that in September and January the number of trading signals on this indicator will increase. Testing will be done on the five-minute time frame. The test will be subjected to 65,000 rate values of the EUR / USD currency pair. Effectiveness of the analysis will be evaluated on the basis of digital (binary) option. Business strategy is based on EMA crossover indicator of current exchange rate. By the contribution there were confirmed hypotheses about more profitable signals when selecting a greater timeframe breadth of moving average. There was also confirmed an increased amount of signals in September, but not in January.

Keywords


Digital Option, Technical Analysis, Forex, Exponencial Moving Average.

References





DOI: https://doi.org/10.15759/ijek%2F2017%2Fv5i1%2F190279