An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points.LinkedInwithBackgroundYourPrivacyRightsInvestopediaandourthird-partypartnersusecookiesandprocesspersonaldatalikeuniqueidentifiersbasedonyourconsenttostoreand/oraccessinformationonadevice,displaypersonalizedadsandforcontentmeasurement,audienceinsight,andproductdevelopment.TochangeorwithdrawyourconsentchoicesforInvestopedia.com,includingyourrighttoobjectwherelegitimateinterestisused,clickbelow.Atanytime,youcanupdateyoursettingsthroughthe"EUPrivacy"linkatthebottomofanypage.Thesechoiceswillbesignaledgloballytoourpartnersandwillnotaffectbrowsingdata.ListofPartners(vendors)Weandourpartnersprocessdatato:Activelyscandevicecharacteristicsforidentification.Useprecisegeolocationdata.Storeand/oraccessinformationonadevice.Selectpersonalisedcontent.Createapersonalisedcontentprofile.Measureadperformance.Selectbasicads.Createapersonalisedadsprofile.Selectpersonalisedads.Applymarketresearchtogenerateaudienceinsights.Measurecontentperformance.Developandimproveproducts.ListofPartners(vendors)IAcceptShowPurposesTechnicalAnalysisGuidetoTechnicalAnalysisTechnicalAnalysisBasicEducationAdvancedTechnicalAnalysisConceptsTechnicalAnalysisTechnicalAnalysisBasicEducationWhatIsanExponentialMovingAverage(EMA)?Anexponentialmovingaverage(EMA)isatypeofmovingaverage(MA)thatplacesagreaterweightandsignificanceonthemostrecentdatapoints.Theexponentialmovingaverageisalsoreferredtoastheexponentiallyweightedmovingaverage.Anexponentiallyweightedmovingaveragereactsmoresignificantlytorecentpricechangesthanasimplemovingaverage(SMA),whichappliesanequalweighttoallobservationsintheperiod.TradingView.KeyTakeawaysTheEMAisamovingaveragethatplacesagreaterweightandsignificanceonthemostrecentdatapoints.Likeallmovingaverages,thistechnicalindicatorisusedtoproducebuyandsellsignalsbasedoncrossoversanddivergencesfromthehistoricalaverage.TradersoftenuseseveraldifferentEMAlengths,suc