What it does
The Exponential Moving Average (EMA) is a moving average that gives more weight to recent prices, so it reacts to new information faster than a simple average. Each new EMA value blends the current close with the previous EMA using a smoothing factor of 2 divided by (period + 1); for a 20-period EMA about 9.5 percent of each new value comes from the latest close. The result hugs price more closely than an SMA of the same length.
How to add it
Click Indicators (ƒx) in the header.
Search “Exponential Moving Average” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use it as a faster trend filter: trade long only while price is above the 20 or 50 EMA, short only while below.
- Trade EMA crossovers, such as the 9/21 or 12/26 pairs, for earlier trend-change signals than SMA crosses.
- Buy pullbacks to a rising EMA in an uptrend; the 20 EMA on daily charts is a widely watched dynamic support level.
- Layer several EMAs (for example 8, 21, 55) as a ribbon: when they fan out in order the trend is strong, when they braid together the market is ranging.
- Intraday traders often use the 9 EMA as a trailing guide, exiting when a bar closes across it.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 9 | 1–10000 |
| Source | select | close | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
| Offset | number | 0 | -10000–10000 |
| Smoothing Line | select | SMA | SMA / EMA / WMA |
| Smoothing Length | number | 9 | 1–10000 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| EMA(9) | line | #2196F3 |
| Smoothed MA | line | #3949AB |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Right-click the indicator's line for quick actions — settings, visibility and removal without hunting through menus.
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- The legend eye toggles it off without losing your settings — handy for before/after comparisons.
Watch out for
- Its extra sensitivity cuts both ways: the EMA generates more false signals than an SMA in choppy, range-bound conditions.
- It still lags price; it can only react to reversals after they have begun, never anticipate them.