Definition
A moving average that gives more weight to recent prices, so it reacts faster to changes.
The story
A simple average treats last Tuesday and two months ago the same. An EMA counts the recent days more heavily, like remembering this week better than last month. It turns faster when prices change direction.
Why you'll see it
It's a common variation on the moving average in chart commentary.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms