EMA
Moving average that weights recent prices more. Marks trend turns earlier than an SMA.
About
An Exponential Moving Average (EMA) weights recent closes more than older ones, so it turns sooner than an SMA of the same period.
A rising EMA under price is a common trend bias. A falling EMA above price is the opposite. Fast and slow EMAs (for example 20 and 50) are read as a stack or a cross.
Add EMA to a mix as the trend filter, then time entries with momentum or a pullback signal so you are not trading every EMA touch.
Mixes using EMA
Parcel Williams PullbackUPS1 day
Close above the slow EMA plus Williams %R recovering from oversold after a dip on a parcel name. Exit when Williams %R turns down from overbought.
EMA Ribbon CrossAAPL1 day
Enter when the fast EMA crosses above the slow EMA; exit on the opposite cross.
Midwest Williams PullbackAEP1 day
Close above the slow EMA plus Williams %R recovering from oversold after a dip on a utility name. Exit when Williams %R turns down from overbought.