A sequential model requires some startup information. In this case, it appears you need to ASSUME the beginning value. The formula works only AFTER you get started.
I am trying to get help computing exponential moving average for stock prices. I have found the formula online, but the thing I am confused about is you need EMA at t-1 in order to calculate the EMA at t=1, so how are you supposed to calculate the EMA at t=0 if there is no prior information?
Any help would be much appreciated. Thanks!