In this document
- Simple Moving Average
- Exponential Moving Average (EMA)
- Bollinger Band (BB)
- Relative Strength Index (RSI)
- Moving Average Convergence Divergence (MACD)
- Usage
A simple moving average (SMA) is an arithmetic moving average calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods.
Input array of numbers:
const data = [1, 10, 100, 1000, 10000];
const result = simpleMovingAverage(data, { periods: 3 });const data = [{ close: 1 }, { close: 2 }, { close: 3 }];
const result = simpleMovingAverage(data, { periods: 3, field: 'close' });const data = [1, 2, 3, ...];
const result = simpleMovingAverageArray(data, { periods: 10 });The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.
Bollinger Bands® are volatility bands placed above and below a moving average. Volatility is based on the standard deviation, which changes as volatility increases and decreases. The bands automatically widen when volatility increases and narrow when volatility decreases.
Input array of numbers:
const data = [1, 10, 100, 1000, 10000];
const result = bollingerBands(data, { periods: 3 });Returned value is an array of three items:
[middleValue, upperValue, lowerValue];const data = [{ close: 1 }, { close: 2 }, { close: 3 }];
const result = bollingerBands(data, { periods: 3, field: 'close' });const data = [1, 2, 3, ...];
const result = bollingerBandsArray(data, { periods: 10 });Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. RSI oscillates between zero and 100.
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.
import { simpleMovingAverage } '@deriv/indicators'