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Exponential Moving Average - EMA |
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Exponential Moving Average - EMA A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. Also known as "exponentially weighted moving average". Notes: This type of moving average reacts faster to recent price changes than a simple moving average. 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' and the 'percentage price oscillator'. In general, the 50- and 200-day EMAs are used as signals of long-term trends. |
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