c_exponential_moving_average_21d_close_split_adjusted#

c_exponential_moving_average_21d_close_split_adjusted(m_close_split_adjusted)[source]

Calculate the 21-day (one month) exponential moving average (EMA) of the split-adjusted close prices.

Parameters:

m_close_split_adjusted (DataColumn) – The adjusted close prices.

Returns:

The 21-day exponential moving average.

Return type:

DataColumn

Notes

The smoothing factor K is given by:

\[K = \frac{2}{n + 1}\]

with n = 21. The EMA is then:

\[\mathrm{EMA}_{\mathrm{current}} = (\mathrm{Adjusted\ Close} \times K) + (\mathrm{EMA}_{\mathrm{previous}} \times (1 - K))\]

In Excel, assuming adjusted close prices are in column A starting at cell A2:

  1. In cell B22, enter:

    =AVERAGE(A2:A22)

  2. In cell B23, enter:

    =(A23 * (2/(21+1))) + (B22 * (1 - (2/(21+1))))

  3. Drag the formula down to apply it to the remaining rows.