An EMA, or exponential moving average, is a type of moving average used in trading practices that measures trend direction over a period of time. It is similar to a simple moving average (SMA), but places more weight on recent data points. The EMA is a weighted moving average that assesses bullish and bearish trends in securities over a specified time frame. The EMA calculation includes the previous EMA value, so the current value includes all the price data. The EMA is commonly used in conjunction with other technical analysis indicators and tools, such as the moving average convergence divergence (MACD) and the percentage price oscillator (PPO). The 12- and 26-day EMAs are often the most quoted and analyzed short-term averages, while the 50- and 200-day EMAs are used as indicators for long-term trends. A rising EMA tends to support the price action, while a falling EMA tends to provide resistance to price action. The EMA is a lag indicator that doesnt predict future prices but showcases the trend that the stock price is following.