Exponential Moving Average (EMA)
Description
EMA, exponential moving average, is a technical indicator that shows the average price of a crypto over a period of time, with more weight given to more recent prices. It is calculated by applying a percentage of the current price to the previous EMA value.
The EMA is a lagging indicator, meaning that it is based on past price data and is not necessarily a good predictor of future price movements. However, it can be useful for identifying trends and patterns in the market and for identifying potential entry and exit points for trades.
The direction of the EMA can be used to identify the overall trend of a crypto. If the EMA is trending upward, it may indicate that the cryptocurrency is in an uptrend, while if it is trending downward, it may indicate that the cryptocurrency is in a downtrend.
The EMA can act as a level of support or resistance for the price of a crypto, meaning that the price may have difficulty breaking through the EMA in a certain direction.
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