The Exponential Moving Average (EMA) is a type of moving average that gives greater weight to recent price data, making it more responsive to new information than a simple moving average. It is widely used in technical analysis to identify trends and potential entry or exit points.
Example
“The trader used a bullish crossover of the 9 EMA above the 21 EMA on the 1-hour chart as a signal to enter long on EUR/USD, riding the trend until the EMAs crossed back bearish.”