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Here are the calculations: EMA [today] ahd [today] xnd K) (EMA [yesterday] x (1 K)) K 2 ( N 1) N the length of the EMA Price [today] the current closing price EMA [yesterday] the previous EMA value EMA [today] the current EMA value The start of the calculation is handled in one of two ways.

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Using Bollinger Bands as our entry point we can stay out of markets that are ranging from upper to lower band, and avoid many false signals.

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