Exponential Moving Average (EMA)

The Exponential Moving Average (EMA) is a type of moving average that places greater weight and significance on the most recent data points. Like all moving averages, its purpose is to smooth price data to help identify the direction of the underlying trend. Because of its weighting, the EMA reacts more quickly to recent price changes than a Simple Moving Average (SMA), making it a popular tool for traders to confirm trend direction and gauge short-term momentum.

Function Syntax

=EMA(data, period)  

• data (array):
  Range of columns containing the date, Open, high, Low, close, volume data.
• period (number):
  Number of (periods) days over which to calculate the EMA.

Returns:
A two-column array of dates and their corresponding EMA values.

Output Example

Below is an example of the resulting array when applying the custom =EMA() function.