The Exponential Moving Average is a staple of technical analysis and is used in
countless technical indicators. In a Simple Moving Average, each value in the time
period carries equal weight, and values outside of the time period are not included
in the average. However, the Exponential Moving Average is a cumulative calculation,
including all data. Past values have a diminishing contribution to the average,
while more recent values have a greater contribution. This method allows the moving
average to be more responsive to changes in the data.
See also Least Squares MA, Simple MA, Triangular MA, Weighted MA, Welles MA, Variable
MA, Volume Adjusted MA, Zero Lag Exponential MA, DEMA, TEMA and T3.
Formula:
