exponential moving average (ema)

How is EMA Calculated?

The EMA is calculated using the following formula:

EMAt = (Valuet * (Smoothing / (1 + Days))) + (EMAt-1 * (1 - (Smoothing / (1 + Days))))

Where:

Valuet is the current data point
EMAt-1 is the EMA of the previous period
Smoothing is typically set to 2
Days is the number of periods over which the EMA is calculated

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