smoothing factor

The number that decides how much the newest price counts in a special average.

The fuller meaning

The weight an EMA gives the newest close: 2 divided by (N + 1) for an N-period EMA. A larger factor, from a shorter period, makes the average turn sooner, giving earlier signals but more false ones.

smoothing factor.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence