Exponential Moving Average (EMA)
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    Exponential Moving Average (EMA)

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    Article summary

    DXcharts powers DXtrade, DXfina, and FinCharts.
    Check our website to find more information about DXcharts library.

    Exponential Moving Average (EMA) is a Simple Moving Average (SMA) that adds some extra value (weight) to the price for the calculated period. It allows to reflect market price changes more sensitively: EMA responds faster and makes the lag less significant than in a SMA.

    EMA = [K x (C - P)]

    where:
    K – exponential smoothing constant
    C – current price
    P – previous periods EMA (an SMA is used for calculations)

    Exponential Moving AverageExponential Moving AverageINPUTS

    Price
    The following data sources are available for calculation of EMA:
    • Open. The Open Price of every bar for the specified period.
    • High. The High Price of every bar for the specified period. 
    • Low. The Low Price of every bar for the specified period.
    • Close. The Close Price of every bar for the specified period. 
    • Median. The Median Price of every bar for the specified period - (High + Low) / 2.
    • Typical. The sum of High, Low, and Close prices divided by 3 for the specified period - (High + Low + Close) / 3.
    • OHLC average. The arithmetical mean of High, Low, Open, and Close prices for the specified period - (Open + High + Low + Close) / 4.
    • Volume. The Close Price of every bar + average volume of an asset for the specified period.
    InputDescription
    LengthThe number of periods the indicator uses to calculate the EMA
    DisplaceThe number of bars the indicator to be shifted to

    PLOTS

    The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

    PlotDescription
    EMAThe EMA plot
    Color

    Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

    Palette
    To create a custom color:
    1. Clickto open the color picker
    2. By using the slider at the bottom, adjust the main color
    3. Then, set a shade for the main color on the palette

    The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

    Weight
    Change the value (in px) to adjust the thickness of the plot.
    Type
    The following plot types are available:
    • Linear. The plot is displayed as a line.
    • Column. The plot is displayed as a histogram.
    • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
    • Points. The plot is displayed as points.
    • Text above candle. The plot is displayed as the price labels above candles on the chart.
    • Text below candle. The plot is displayed as the price labels below candles on the chart.
    • Triangle above candle. The plot is displayed as triangles above candles on the chart.
    • Color candle. The candles on candle-type charts are highlighted with specified colors.

    OVERLAYING

    Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

    Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE