EMA (Exponential Moving Average)
A moving average that gives more weight to recent prices.
Definition
An Exponential Moving Average smooths price data to reveal the underlying trend, giving greater weight to more recent prices so it responds faster than a simple average. Assetick plots the EMA20 and EMA50 directly on each stock's candlestick chart, and the ML model uses price position relative to both.
How it is calculated
Unlike a simple moving average that weights all periods equally, an EMA applies a multiplier that decays exponentially into the past. The result is a line that hugs recent price action more closely. Common periods are 20, 50 and 200 days.
How to read it
When price is above a rising EMA, the trend is generally up; below a falling EMA, generally down. A shorter EMA crossing above a longer one (a golden cross) is a classic bullish signal; the reverse (a death cross) is bearish.
For DSE investors
The EMA50/EMA200 golden and death crosses are widely watched on the DSE. Assetick's scanner includes both 'EMA golden cross' and 'EMA death cross' presets so you can find stocks where a long-term trend change is forming across the whole market.
Frequently asked questions
What is the difference between EMA and SMA?+
A Simple Moving Average (SMA) weights every period equally, while an Exponential Moving Average (EMA) weights recent prices more heavily, making it react faster to price changes.
What is a golden cross?+
A golden cross occurs when a shorter-term moving average, such as the EMA50, crosses above a longer-term one like the EMA200. It is widely read as a bullish long-term signal.