This means that it analyzes the rate at which prices rise and fall. ![]() Relative strength index (RSI) is a momentum indicator, represented as a number between 0 and 100. EMA is considered more sensitive than MA, and is generally favored among short-term analysts. Because of this, it reacts faster to sudden price swings.Īnalysts generally compare EMAs for different time periods to help determine whether price trends will continue. However, unlike MA, EMA places more weight on recent data. Both show the average closing price over a time period. By comparing MAs for different time periods, analysts may be able to identify price trends over time.Įxponential moving average (EMA) is similar to the moving average (MA). It can also help reduce the impact of short-term price fluctuations. For example, any given point on a 20-day moving average shows the average of all closing prices from the previous 20 days.Īnalysts generally use MA to smooth out price data. Moving average (MA) shows the average closing price over a time period. ![]() High volumes may indicate that a movement in price is significant, while low volumes may indicate that a movement in price is insignificant. A green bar shows a price increase during the period, and a red bar shows a price decrease.Īnalysts generally use volume to gauge whether recent price swings are likely to be brief or part of a larger trend. The length of the bar will indicate the volume traded. Each time period has a corresponding bar. Volume shows how much of an asset has been traded over a time period (e.g., an hour, a day, a week).
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