EMA
Exponential Moving Average
Technical AnalysisA type of moving average that gives more weight to recent prices, making it more responsive to new information than simple moving average.
Formula
EMA = (Price × Multiplier) + (Previous EMA × (1 - Multiplier))
Why it matters
Traders use 20-day and 50-day EMAs for trend identification. Price above EMA suggests uptrend. EMA crossovers generate buy/sell signals.
Indian example
Related terms
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