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". Investopedia Says:
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 (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends. Related Terms:
Linearly Weighted Moving Average
Moving Average
Moving Average Convergence Divergence - MACD
Percentage Price Oscillator - PPO
Simple Moving Average - SMA
Speed Resistance Lines
Technical Analysis |