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EMA
(Exponential Moving Average)
EMA (Exponential Moving Average) is a technical analysis indicator that gives more weight to recent price data, making it more responsive to new information than the SMA. Traders use EMAs to identify trends and potential reversal points.
Common EMA periods include 12-day and 26-day for short-term trading, and 50-day and 200-day for long-term trends. The 200-day EMA is particularly watched as a major support/resistance level. EMAs form the basis for other indicators like MACD. Unlike SMA, EMA calculations apply smoothing factors that decrease exponentially, making them preferred for many traders despite being more complex to calculate.
Common EMA periods include 12-day and 26-day for short-term trading, and 50-day and 200-day for long-term trends. The 200-day EMA is particularly watched as a major support/resistance level. EMAs form the basis for other indicators like MACD. Unlike SMA, EMA calculations apply smoothing factors that decrease exponentially, making them preferred for many traders despite being more complex to calculate.