exponential moving average (ema)

How is EMA Calculated?

EMA is calculated using the following formula:
EMA_today = (Value_today * (Smoothing / (1 + Days))) + EMA_yesterday * (1 - (Smoothing / (1 + Days)))
Here, Smoothing is a constant that typically takes a value of 2. This formula ensures that the recent data points have more weightage compared to older data points.

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