![]() For example if one were to analyse the stock price performance of HDFC Bank over the previous year, just saying the stock moved up 17.3% will not give us the correct picture. The data item is calculated using 104 weekly price close pointsīenchmark is the standard against which performance of a security is measured. The data item is calculated as the excess return of the stock over and above the corresponding benchmark returns. ![]() We have added 10, 50, 100, and 200 day EMAs as screener filters Alpha For a 20-day moving average, the multiplier would be = 0.0952. The multiplier is added for smoothing (weighting) the EMA, which typically follows the formula. The following formula is used to calculate the current EMA:ĮMA = Closing price x multiplier + EMA (previous day) x (1-multiplier) An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average (SMA), which applies an equal weight to all observations in the period. The exponential moving average is also referred to as the exponentially weighted moving average. We have added 10, 50, 100, and 200 day SMAs as screener filters Exponential Moving AverageĪn exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. To avoid this, users can implement smoothened out ratios like (50D SMA)/E rather than just P/E as custom filters. However, since closing prices change daily, it can cause unnecessary noise in price-specific ratios like P/E, P/S, etc. Comparing average closing prices of different stocks doesn’t tell much, since the absolute stock price can be anything, and irrelevant to how good the company is at its core. It is primarily a technical indicator more relevant for traders. For instance, a 10D SMA means the average of all closing prices from today to 10 days ago. ![]() Simple Moving AverageĪ simple moving average (SMA) is just what it sounds like, simply an average of the closing prices in a particular date range. Since the low could be before the high, that might not necessarily be your worst return, rather the % difference between 52 week high and the lowest point occurring after it would be your max loss. Also known as maximum drawdown, the calculation of this metric is not as straightforward as the % difference between the 52 week high and low. It gives investors an idea of the worst-case return if they decide to invest in a particular stock. Indicates the maximum fall in the value of the investment over the previous 1 year In simple terms, it is the % return an investor would have made if they would have bought a stock at the highest price point and sold and the lowest price point in the past year.
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