Testing EMA Indicator for the Currency Pair EUR / USD

Authors

  • Andrea Kolková College of Entrepreneurship and Law, Prague, Czech Republic

DOI:

https://doi.org/10.37335/ijek.v5i1.51

Keywords:

Digital option, technical analysis, forex, exponencial moving average

Abstract

The aim of this paper is to verify the effectiveness of EMA indicator according to selected time intervals. The underlying assumption is that on longer timescales EMA is profitable and provides more relevant signals.  The second objective of this paper is to test the signals of indicators in different months. It is believed that in September and January the number of trading signals on this indicator will increase. Testing will be done on the five-minute time frame. The test will be subjected to 65,000 rate values of the EUR / USD currency pair. The effectiveness of the analysis will be evaluated on the basis of a digital (binary) option. Business strategy is based on EMA crossover indicator of the current exchange rate. By the contribution, there were confirmed hypotheses about more profitable signals when selecting a greater timeframe breadth of moving average. There was also confirmed an increased amount of signals in September, but not in January.

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Published

2017-06-30

How to Cite

Kolková, A. . (2017). Testing EMA Indicator for the Currency Pair EUR / USD. International Journal of Entrepreneurial Knowledge, 5(1). https://doi.org/10.37335/ijek.v5i1.51

Issue

Vol. 5 No. 1 (2017): International Journal of Entrepreneurial Knowledge

Section

Research

License

International Journal of Entrepreneurial Knowledge (ISSN 2336-2960) is published by the Center for International Scientific Research of VŠO and VŠPP in cooperation with the following partners:

  • University College of Business in Prague, Czech Republic
  • University of Entrepreneurship and Law, Prague, Czech Republic
  • School of Business and Administration of the Polytechnic Institute of Setúbal, Portugal
  • Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovakia
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