It’s a simple indicator that charts the price of a security over time. EMAs are often calculated in 10, 50 and 200-day moving averages. These modified moving averages can be used for any asset including stocks, forex and indices to track price trends and confirm entry and exit points for your trading strategy.
How EMA is used in trading?
The EMA is used in trading to identify buy and sell signals as well as ongoing trends. These signals appear in crossovers and divergences from the price action or other moving averages. Keep reading to learn different ways exponential moving averages can be used in trading.
What is an EMA indicator?
The EMA, or Exponential Moving Average, is a technical indicator that is used by traders to identify trend direction and potential trade entry and exit points. The EMA is calculated by taking a certain number of the most recent price data points and weighting them according to their distance from the current period.
