# EMA

/ˈimə/ (US) · CEFR C1 · Noun

Source: https://englishreference.com/word/ema
Updated: 2026-05-19

## Definition

a type of moving average used in technical analysis to show the average price of a stock over a specific period. It helps traders see if the price is moving up or down.

For teachers: a technical indicator used in financial markets to calculate the weighted moving average of a stock's price over a specified period. It assigns more weight to recent data points to provide a more responsive trend signal.

## Examples

- The EMA shows that the stock price is trending upward.
- Traders often use the EMA to identify potential entry points when the price crosses above the moving average line.
- By comparing the EMA with the simple moving average, analysts can detect momentum shifts that indicate a potential reversal in the current market trend.

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