Lessons › Indicators › Exponential moving average
World 4 · Indicators · lesson 3 · level 2
Exponential moving average
An EMA gives the newest prices more weight, so it reacts faster than a simple average.
What it is
The fast 9-period average crossed above the slower 21-period average.
Your task in the app
The averages just crossed. Buy, sell, or wait?
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 739 | 43% | 53% | 4% |
| United States | 824 | 44% | 50% | 6% |
| Japan | 476 | 42% | 56% | 2% |
| Crypto | 8,451 | 36% | 56% | 8% |
| Forex | 917 | 36% | 56% | 8% |
| Commodities | 318 | 36% | 58% | 6% |
Counted on real past charts by the Trading Class research engine, 11,725 cases in all. Past odds, not a forecast.
Read more on the EMA 9/21 bullish cross pattern page.
Goal of this lesson: Understand how an EMA differs from an SMA and when that difference matters.