Swing trading is a trading strategy that attempts to capture short-term profits from price fluctuations in a security. Traders who use this strategy typically hold positions for a few days or weeks, and they may use technical analysis to identify trading opportunities. One of the most popular technical indicators used by swing traders is the exponential moving average (EMA).
The EMA is a type of moving average that places more weight on recent prices than older prices. This makes it more responsive to price changes than a simple moving average, which gives equal weight to all prices in the calculation. As a result, the EMA can be a more effective tool for identifying trends and trading opportunities.
