Blog : EMA Indicator
EMA
The Exponential Moving Average (EMA) is a type of moving average that emphasizes the importance of the most recent market data. It weights recent prices more heavily than older prices, making it more responsive to new information. The EMA can be compared and contrasted with the Simple Moving Average (SMA).
| EMA Inputs | |||
|---|---|---|---|
| Trend Following | Mean Reversion | ||
| Period | 20 | Period | 20 |
| Source | close | Source | close |
| EMA | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|---|
| Trend Following | Price crossover EMA | Price crossunder EMA | Price crossunder EMA | Price crossover EMA |
| Mean Reversion | Price crossunder EMA | Price crossover EMA | Price crossover EMA | Price crossunder EMA |
| EMA | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| Trend Following | Price > EMA | Price < EMA | Price < EMA | Price > EMA |
| Mean Reversion | Price < EMA | Price > EMA | Price > EMA | Price < EMA |