Exponential Moving Average - EMA
A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. Also known as "exponentially weighted moving average".
Investopedia Commentary
This type of moving average reacts faster to recent price changes than a simple moving average. The 12- and 26-day EMAs are the most popular short-term averages, and they are used to create indicators like the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). In general, the 50- and 200-day EMAs are used as signals of long-term trends.
Related Links
Basics of Weighted Moving Averages
Moving Averages Tutorial
Introduction To Technical Analysis
See also: Moving Average, Moving Average Convergence Divergence - MACD, Percentage Price Oscillator - PPO, Simple Moving Average - SMA, Technical Analysis
Also spelled: Exponentially weighted moving averageEMA