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Math Help - Exponential Moving Average

  1. #1
    Newbie
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    Mar 2009
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    Exponential Moving Average

    Hi,

    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!
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  2. #2
    MHF Contributor
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    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.
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