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The exponential moving average (EMA) is a technical indicator that is designed to improve the idea of the Simple Moving Average (SMA) by giving more weight to the most recent price data, which is considered to be more relevant than older data.

It is placed like a line on the price chart based on a mathematical formula to smooth out the price action. By allocating more weight to the recent price and less weight to prices that occurred in the past, the EMA adapts more