EMA
Exponential Moving Average
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Exponential Moving Average
Last updated
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The "EMA" is calculated with more emphasis on the close price closes. In other words, it gives more importance to the last price values than the past price values. EMAs are more sensitive to the latest price changes than SMAs, as they give more importance to recent data than to older data.Due to this feature, it is often preferred by investors. Even if the past price closures are outside the selected period, they keep their multipliers and do not leave the average.
P = Closing Price
n = Number of Periods
Multiplier = 2 / (n + 1)
EMA = Closing price x multiplier + EMA (previous day) x (1-multiplier)
