Moving Average Exponential
Trend, EMA
- What it shows
A moving average that gives more weight to recent bars, so it turns sooner than a simple average of the same length.
- How it is built
Each new value is a share of the latest close plus the rest from the previous value. The share is 2 / (N + 1), so a short length reacts faster.
Default: Length 9, source close.
- How traders read it
- Reacts earlier than the simple average, with more false turns in a choppy market.
- Often used as dynamic support or resistance in a trend.
- Two of them with different lengths are read by their crossing.
Related indicators
Smoothed Moving AverageSupertrendIchimoku CloudParabolic SAR