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  1. Home
  2. /Glossary
  3. /Exponential Moving Average (EMA)
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Exponential Moving Average (EMA)

A type of moving average that gives more weight to recent prices, making it react faster to new information than a simple moving average.

Definition

A type of moving average that gives more weight to recent prices, making it react faster to new information than a simple moving average. The 20 EMA and 50 EMA are popular for identifying short-term trends. Traders often look for crosses between different EMAs as buy or sell signals.

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Related Terms

Technical Analysis

Studying price charts and patterns to predict future movements.

Death Cross

A bearish technical pattern where the 50-day moving average crosses below the 200-day moving average.

Golden Cross

A bullish technical pattern where the 50-day moving average crosses above the 200-day moving average.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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