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| Definitions by InvestorWords.com |
| What is...? |
| exponential moving average A form of weighted averaging in which all prices have influence on the average but with decreasing weight placed upon older prices. The 50-day exponential moving average (EMA) is overlaid in purple. The 13-day EMA is overlaid in green. These lines identify the overall direction of the price of a stock. The most important thing to note is whether prices are above or below these two moving averages. To learn more about how to use charts and technical indicators to enhance your trading, view interactive charts tutorial. |
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