EMA (Exponential Moving Average)
A moving average that weights recent prices more heavily, using an exponential decay factor. An EMA reacts faster than a simple moving average of the same length, which makes EMA pairs (like 12/26, the MACD's core) popular for quicker trend signals — at the cost of more whipsaws in choppy markets.
See it in action: EMA 12/26 Trend →
Backtested on 59 ETFs over 5.7 years with real engine results and a buy-and-hold comparison on every page.
Related terms
SMA (Simple Moving Average)The arithmetic average of the last N closing prices, recalculated each…MACDMoving Average Convergence Divergence: the difference between a 12-per…WhipsawA quick false signal: a strategy enters on a crossover or breakout, th…
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-10-02, $10,000 starting capital, no margin, no fees or slippage in the headline run; buy-and-hold puts 98% of the account in at the first open, as the templates do) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.