What is an EMA (Exponential Moving Average)?
An EMA (Exponential Moving Average) is a type of moving average that gives more weight to recent prices, making it more responsive to current market changes than a simple moving average. EMAs are widely used for trend identification and as dynamic support/resistance levels.
More detail
Common EMA periods: 20 (short-term trend), 50 (intermediate), 200 (long-term regime).
EMA reacts faster than SMA of the same period — useful for spotting trend changes earlier.
EMA crossovers (e.g. 9-EMA crossing 21-EMA) are common entry signals, especially when filtered by a longer-term trend.