Exponential Moving Average (EMA)

Technical indicator that tracks an investment's price over time (such as the price of a stock or commodity). An example of a weighted moving average (WMA) is the exponential moving average (EMA), which lends more significance to recent price data. The EMA, like the simple moving average (SMA), is used to track price movements over time, and moving average ribbons make it easier to keep an eye on multiple EMAs at once.