# Exponential moving average - post indicative



## Wilson! (3 December 2006)

Why does this indicator always identify trends *after the event*. 
Is there a better way to use these to identify entry / exit

And or alternatively, can you suggest a better indicator to use, for intraday or short term trading - entry/exit

Look at the attached bhp chart 
Thanks


----------



## kaveman (3 December 2006)

It is an average of X number of previous bar prices. In fact all indicators use previous bar values in their calculations. Funny about that.
So for an indicator to move in another direction then there must be sufficient previous bar values moving in that direction.

It comes down to balance of losing some of the trend with long range indicator, or being whipsawed in and out with a short range indicator.


----------

