Exponential Moving Average (EMA): A bit more complex, this moving average is similar to SMA, but places greater weight on more recent data, as it is viewed as more relevant or important. The weighting given to the most recent price is greater for a shorter-period EMA than for a longer-period EMA. Since the EMA calculation places more weight on the most recent data, it “hugs” the price action a bit more tightly and reacts more quickly than the SMA.
What is an Exponential Moving Average? (EMA)
Updated over 2 years ago