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EMA (exponential moving average)

The average price, with recent candles counting more.

An EMA smooths the price into one line. Unlike a simple average it gives the newest candles the most weight, so it turns sooner when the market turns.

Short EMAs (9, 21) follow the price closely; long ones (50, 200) show the bigger trend. Price above a rising EMA is the classic definition of an uptrend.

In TradeXtool

Gate: EMA(200) [1d] is rising, so you only trade when the daily trend points up.

Watch out

A cross of two EMAs is late by design: by the time the lines cross, much of the move has happened. Crosses work better as a filter than as a buy signal.

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