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Exponential Moving Average - EMA
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Definition of '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. The
exponential moving average is also known as "exponentially weighted moving average".
Investopedia explains 'Exponential Moving Average - EMA'
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.
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