Trading Strategies

Exponential Moving Average

Definition

What is Exponential Moving Average?

A moving average that assigns greater weight to more recent observations.

Example in practice

The 20-day EMA reacts faster to new prices than the 20-day SMA.

Keep learning

The tendency of assets with strong recent performance to continue outperforming for a period.

A persistent direction in price or market movement.

A pattern of generally rising prices, often marked by higher highs and higher lows.

The evaluation of economic, industry, company, and financial information to estimate an investment's value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.