Too Long; Didn't Read
Exponential Moving Average (EMA) for Trading is a lagging indicator and to make it more relevant technicians suggested giving more importance to most recent price candlesticks and lesser weight to past prices. EMA is the sum average of price points multiplied by a weighing factor. Weighted Moving Average is a modified form of EMA, with weighing decreases with each previous price. The trend line smoothens the noise of price action and shows the real direction of price movement. When the lines cross each other cutting each other a cross over happens leading to price run in a specific direction.