Author: Celia Petit

The EMA indicator uses “period” and “price”, as does the SMA, but fresher prices are given more weight to make the indicator respond more quickly to market changes. The EMA works well in tandem with another EMA in strong trending markets, but the use of an EMA in a sideways market is not recommended. Since…

That’s why many traders combine the EMA with other technical indicators to avoid the perils of the whipsaw consolidation periods. The exponential moving average is also known as the exponentially weighted moving average. An exponentially weighted moving average gives more weight to recent price changes compared to a simple moving average (SMA), which treats all…