Syntax

EMA(A1; period)

Arguments

A1 must be an array.
The 'period' argument must be a constant greater than or equal to 1.

Result

The result is an array.

Description

A moving average is an indicator that shows the average value of a security's price over a period of time. An exponential (or exponentially weighted) moving average is calculated by applying a percentage of today's closing price to yesterday's moving average value. Exponential moving averages place more weight on recent prices. The formula of the exponential moving average is:   

EMA[n] = A1[n] * Exp_Percent + EMA[n-1] * (1 - Exp_Percent) 

The exponential percentage is calculated internally from the 'period' parameter with the help of the following formula: 

Exp_Percent = 2 / (Time_Periods + 1) 

If you prefer to work with exponential percentages, you can use the following formula to convert the percentages to time periods: 

Time_Periods = (2 / Exp_Percent) - 1

Related Examples

Windows Forms: Data Manipulation\Functions\Moving Averages