Exponential Moving Average
a.k.a. EMA
A moving average that gives more weight to recent prices, so it reacts faster than a simple moving average.
In plain English
A moving average that gives more weight to recent prices, so it reacts faster than a simple moving average.
An EMA smooths price like any moving average, but it leans on the latest candles more heavily. When price turns, the EMA turns sooner than a simple moving average of the same length.
Faster reaction means earlier signals, and also more false ones. Popular settings include the 20, 50 and 200 EMAs.
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