01 · Indicator · Exponential Moving Average
What is Exponential Moving Average (EMA)?
The EMA is a moving average that gives more weight to recent closes. It hugs price more tightly and reacts faster to changes in pace.
It underpins many indicators, including the MACD, Keltner and the EMA ribbon.
02 · Indicator · Exponential Moving Average
The calculation
EMA = Close × k + previous EMA × (1 − k), with k = 2 / (N + 1).
The smaller N, the larger k and the closer the EMA follows price.
03 · Indicator · Exponential Moving Average
Reading the signals
The 200 EMA often separates bull and bear markets. 9/21 EMAs are used short term to follow momentum.
The EMA ribbon stacks several EMAs: when they fan out in order the trend is strong; when they tangle the market hesitates.
04 · Indicator · Exponential Moving Average
Settings and combinations
Adjustable EMA, 200 EMA and the EMA ribbon are in the Averages group. It pairs well with: Simple Moving Average (SMA), DEMA and TEMA, MACD.
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Moving averages group, then click Exponential Moving Average.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01Why does the EMA react faster?
It weights recent closes more than the SMA does.
02What is the EMA ribbon for?
To see the strength and order of the trend at a glance.
03Is the 200 EMA reliable?
It is widely watched, but not a guaranteed barrier.