The forex industry is made up of countless definitions and it's easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we've compiled one which aims at explaining key definitions in the simplest way possible. This way, you'll never be lost or confused again!
EMA takes into account all available prices in its calculation and assigns more weight to the most recent prices.
EMA = (Price current – EMA previous) * multiplier + EMA previous
Where multiplier = 2/Periods + 1
Category: Technical Indicators