An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average (SMA), which applies an equal weight to all observations in the period.
The following formula is used to calculate the current EMA:
EMA = Closing price x multiplier + EMA (previous day) x (1-multiplier)
The multiplier is added for smoothing (weighting) the EMA, which typically follows the formula: - [2 ÷ (number of observations + 1)].
For a 20-day moving average, the multiplier would be [2/(20+1)]= 0.0952
We have added 10, 50, 100, and 200 day EMAs as screener filters.