Exponential Moving Average (EMA) is a trend indicator that reacts faster to market changes than the traditional Simple Moving Average (SMA). It assigns greater weight to recent prices, making it ideal for short-term trading. This article explores how EMA works, provides actionable strategies using EMA in trading, and highlights its advantages and disadvantages. 🔍 Key Difference Between EMA and SMA: EMA puts more emphasis on recent price data, while the influence of older prices gradually decreases, allowing it to react faster to market shifts. In contrast, SMA gives equal weight to all prices over the past timeframe. For this reason, EMA is generally preferred for short-term trading compared to the SMA.