---
title: "Definition of EMA"
url: https://signalscreener.fr/definition/ema/
markdown_url: https://signalscreener.fr/definition/ema.md
description: "A moving average that gives more weight to recent prices, making it more responsive to new information."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "EMA"
  - "Exponential Moving Average"
translations:
  de: https://signalscreener.fr/de/definition/ema.md
  es: https://signalscreener.fr/es/definition/ema.md
  fr: https://signalscreener.fr/fr/definition/ema.md
  it: https://signalscreener.fr/it/definition/ema.md
  pt: https://signalscreener.fr/pt/definition/ema.md
  zh: https://signalscreener.fr/zh/definition/ema.md
---

# Exponential Moving Average

## What is EMA?

A moving average that gives more weight to recent prices, making it more responsive to new information.

## Think of it like this

Like tracking your recent test scores where last week's grades matter more than last month's.

## Formula

```
EMA = (Price × k) + (Previous EMA × (1-k)), where k = 2/(n+1)
```

- **Price**: Current closing price
- **k (Smoothing)**: Weighting multiplier for the period

## Why it matters

- Reacts faster to price changes than SMA
- Popular for short-term trading signals
- EMA crossovers signal trend changes
- Used in MACD calculation

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| Price > EMA | Bullish | Price above average, uptrend |
| Price < EMA | Bearish | Price below average, downtrend |
| EMA12 > EMA26 | Buy Signal | Short-term trend strengthening |
| EMA12 < EMA26 | Sell Signal | Short-term trend weakening |

## Real-world example

If EMA(12) crosses above EMA(26), it's a bullish signal suggesting upward momentum.

---

This is educational content, not financial advice.

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