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Glite Dictionary
📈 A trend indicator 🪧 A wish plaque
ema

ema

1 9.1
A way of averaging numbers in a list that gives more weight to recent values
  • noun
  • Specialized
translation icon : media móvil exponencial
  • The moving average plot illustrates the EMA of the asset over the past month.
  • EMA antigen
  • EMA production
  • EMA for CD

Examples

  • The 50-day EMA helps traders identify the overall trend in the stock market.

  • For example, have a look at the direction of the 200-day EMA (orange line) in both charts.

    Blog text (20)

  • However, my feeling is we are more likely to see a move down to around its 200-day EMA before making its next run.

    Blog text (20)

  • Let's use 10, 25, and 50 EMAs for our example.

    Blog text (12)

  • Unless we get a weekly close below the 21 EMA, I would not become overly bearish.

    Blog text (11)

  • Currently, prices are just above their 21-week EMA, and the other moving averages are pointing up at relatively good angles.

    Blog text (11)

  • The 10 (blue) and 20 (yellow) week EMAs are flattening out.

    Blog text (10)

  • Investors often compare the current price to the EMA to make informed decisions.

Surface Forms

ema singular
emas plural

Morphology

ema = E + M + A

This is an acronym for 'exponential moving average', so the letters themselves do not transparently convey the meaning to most learners.

Etymology

The word ema is short for exponential moving average, where moving average means an average that changes over time and exponential means recent numbers count more. So an ema is an average that 'pays more attention' to the newest data, which helps people see current trends.