The weighting given to the most recent price is greater for a shorter-period EMA than for a longer-period EMA. Since the EMA calculation gives more weight to the most recent data, it “hugs” the price action more closely and reacts more quickly than the SMA.
Knowledge Base/What is an Exponential Moving Average (EMA)?
What is an Exponential Moving Average (EMA)?
Exponential Moving Average (EMA) is a technical indicator that is similar to the Simple Moving Average (SMA) but places greater weight on more recent data as it is considered more relevant or important.
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