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What is the EMA?

Pricing plans and indicator

Hi there, here's Daveatt from TradingView.

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The exponential moving average (EMA) is one of the most commonly utilized forex trading tools. Traders use the EMA overlay on their trading charts to determine entry and exit points of a trade based on where the price action sits on the EMA

EMA is typically calculated for 12- or 26-day periods for short-term traders, and the ever-popular 50-day and 200-day EMA is used by long-term investors. While the EMA line reacts more quickly to price swings than SMA, it can still lag quite a bit over the longer periods

Finally, the following formula is used to calculate the current EMA: EMA = Closing price x multiplier + EMA (previous day) x (1-multiplier)

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Do you want a better Trading Performance?

Hey, I'm Dave. I'm determined to make a trading account grow.
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About Dave


He is the co-founder of Best Trading Indicator. Previously a quant trader for a french bank in New York City, he's been trading full-time for the past 11 years.

Dave used to teach his professional traders how to use his trading algorithms.

Best Trading Indicator is 3 years old and already counts 1800 recurring subscribers profiting from our trading course and TradingView signals.

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Do you want a better Trading Performance?

Hey, I'm Dave. I'm determined to make a trading account grow.
My only question is, will it be yours?

The signals and trading method frameworks are available to our VIP subscribers