Exponential moving average (EMA) in Forex
A clear definition of Exponential moving average (EMA), with practical context for reading markets and making better trading decisions.
Definition
A moving average that gives more weight to recent prices, so it reacts faster than an SMA of the same length.
Practical forex example
A trader may use a 20-period EMA to follow the rhythm of a trend.
Why Exponential moving average (EMA) matters
Understanding Exponential moving average (EMA) helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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