How to Interpret the Exponential Moving Average (EMA)

The exponential moving average is one of the most common tools for analyzing market trends. However, because it relies on historical data, it may misinterpret certain trends. This is because traders often interpret trendlines based on past prices, which can cause them to be misled. So, what is the best way to interpret the exponential moving average? Here are a few things to consider. Read on to learn more. Once you have an understanding of what the EMA is, you can apply it to your trading strategy. The EMA is a better indicator of price trends than simple moving averages. […]

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