Educational Post:
Exponential Moving Average (EMA)
The EMA is a moving average that places a greater weight and significance on the most recent data points.
An EMA does serve to alleviate the negative impact of lags to some extent. Because the EMA calculation places more weight on the latest data, it “hugs” the price action a bit more tightly and reacts more quickly. This is desirable when an EMA is used to derive a trading entry signal.
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