Exponential Moving Average - Trading Glossary

EMA is an abbreviation for the Exponential Moving Average. An Exponential Moving Average (EMA), also known as an exponentially weighted moving average (EWMA),[3] is a type of infinite impulse response filter that applies weighting factors which decrease exponentially. The weighting for each older datum point decreases exponentially, never reaching zero.

This moving average is far more dynamic in its engagement with the market than most other moving averages and can provide very clear levels of support and resistance as well as ongoing market context

Learn more about how we use Moving Averages in our Top Down Technical analysis process here.

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