16 lines
409 B
Markdown
16 lines
409 B
Markdown
# EMA
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The EMA is designed to improve on the idea of an SMA by giving more weight to the most recent price data, which is considered to be more relevant than older data. Since new data carries greater weight, the EMA responds more quickly to price changes than the SMA does.
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## Fromula
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EMA = Price(t) × k + EMA(y) × (1−k)
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where:
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t = today
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y = yesterday
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N = number of days in EMA
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k = 2 ÷ (N + 1)
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