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Studies · Trend

Exponential Moving Average (EMA)

ema · Exponential moving average

Drawn over priceReads one column (close here)
Hover the chart to read values · practice data: a seeded random walk with no overnight gaps

What it measures

An average that weights recent bars more heavily than older ones, fading the past away gradually rather than dropping it off a cliff. It reacts to a turn sooner than an SMA of the same length.

How traders use it

  • The same jobs as an SMA (trend direction, crossovers, support and resistance) when you want an earlier response.
  • Short EMAs (8, 12, 21) are common for trading pullbacks inside a trend; the 12 and 26 are the halves of MACD.
  • Two EMAs crossing is one of the simplest trend-following entry rules.

Parameters

NameValueDefaultAllowedWhat it does
period202 … 5000
usual 5–200
The span of the average. The weight on the newest bar is 2 ÷ (period + 1).