Glossary › exponential moving average
Trading glossary · indicators
exponential moving average
An average price line that pays more attention to the newest prices, so it turns faster than a plain average.
The fuller meaning
A moving average that weights recent prices more heavily through a smoothing factor, so it reacts faster than an SMA of the same period, with less lag but more false signals. This app uses the EMA 9/21 cross; the 20 and 50 EMA are common dynamic support and resistance.
exponential moving average, also called EMA.
Related words
61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence