EXPONENTIAL MOVING AVERAGE (EMA)

The EMA considers more recent data to be more relevant than older data and weights them accordingly. To calculate today’s EMA, you need only these values: yesterday’s EMA, today’s value (for example, today’s closing price), the number of periods to average (n), and a number k called the exponential percentage, but more commonly known as the smoothing constant.

k = 2 / ( n + 1)

The EMA is sometimes described by the smoothing constant and sometimes by the . . .  complete defintion in a new browser window.