Exponential Moving Average (EMA)

Category: trend

Calculates and plots a standard Exponential Moving Average (EMA) based on closing prices. It is used to identify trend direction and potential support/resistance levels.

Formula

EMA_t = \alpha \cdot Price_t + (1 - \alpha) \cdot EMA_{t-1} \text{ where } \alpha = \frac{2}{len + 1}

Inputs

• Length (default: 14)

See signal primitives, usage in published strategies and more on WOBR StrategyVerse.