![]() ![]() Consequently any person acting on it does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. ![]() IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. This information has been prepared by IG, a trading name of IG Markets Limited. EMA may be used by itself, but oftentimes in conjunction with other technical analysis tools or fundamental analysis for trading as well. The underlying assumption here is that price patterns tend to repeat over time and market technicians believe that humans often are irrational and emotional and thus tend to behave similarly in similar circumstances. Prices are viewed as a reflection of the real-time supply and demand interactions and thus investor sentiment. This price-based indicator typically looks at the average closing price of a security over a specified number of periods, such as a 50-day, 100-day or longer 200-day EMAs, smoothing out short-term price fluctuations to provide a clearer image of the market trend.Īs with other moving averages, this is a technical analysis tool that uses historical data to predict future price movements of a freely-traded market. The weight of the EMA is exponentially tilted towards more recent occurrences, giving the recent data greater influence over the reading. The exponential moving average (EMA) is a type of moving average that considers the weighted average of a series of recent data to reflect the ongoing trend in the market. What is exponential moving average (EMA)? ![]()
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