Exponential Moving Average (EMA)
A moving average that gives more weight to recent prices.
Full Definition
The EMA applies more weight to recent prices, making it more responsive to new information than a simple moving average. Popular EMAs include the 9, 20, 50, and 200-period. EMAs react faster to price changes, reducing lag but potentially generating more false signals. Many traders use EMA crossovers or price crosses of the EMA as signals.