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Exponential moving average

The exponential moving average, which we will refer to as the EMA, is the single most well-known and widely used technical analysis indicator for time series data. 

The EMA is similar to the simple moving average, but, instead of weighing all prices in the history equally, it places more weight on the most recent price observation and less weight on the older price observations. This is endeavoring to capture the intuitive idea that the new price observation has more up-to-date information than prices in the past. It is also possible to place more weight on older price observations and less weight on the newer price observations. This would try to capture the idea that longer-term trends have more information than ...