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When is the Exponential Moving Average (EMA) most often utilized?

When is the Exponential Moving Average (EMA) most often utilized?

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An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points.

EMAs are commonly used in conjunction with other indicators to confirm significant market moves and to gauge their validity. For traders who trade intraday and fast-moving markets, the EMA is more applicable. Quite often, traders use EMAs to determine a trading bias. For example, if an EMA on a daily chart shows a strong upward trend, an intraday trader’s strategy may be to trade only from the long side on an intraday chart.

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