Video narration
EMA stands for Exponential Moving Average. On a trading chart, it’s a smooth line calculated from price data over a chosen time period, like the last 20 candles. What makes an EMA “exponential” is that it gives more weight to recent prices, so it reacts faster to new moves than older prices do. You’ll usually see it tracking the general direction of price, but lagging slightly behind the candles. Traders use EMA mainly to read trend direction and momentum. If price is mostly above a rising EMA, that can suggest an uptrend; below a falling EMA can suggest a downtrend. The EMA can also act like a dynamic support or resistance area where price often pulls back and reacts. Another common use is crossovers: for example, a shorter EMA crossing above a longer EMA may be treated as a bullish signal, and crossing below as bearish. EMAs don’t predict the future—this is general education, not financial advice.