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EMA

Source​

https://github.com/quadcode-tech/quadcodescript-library/blob/master/averages/ma_ema.lua

Syntax Format​

ema(source, period)

Overview​

EMA (Exponential Moving Average) belongs to the MA family, which gives more weight to the recent price changes, making it more suitable for short-term strategies. The function returns the exponential moving average of source for the period bars.

Parameters​

ParameterTypePurpose
sourceseriesInput series, taken into calculation
periodnumericMA (moving average) period

Returns: series.

Example​

instrument { name = "Exponential Moving Average", short_name = "EMA", overlay = true, icon="indicators:MA" }

period = input (9, "period", input.integer, 1)
source = input (1, "source", input.string_selection, inputs.titles_overlay)

input_group {
    "EMA Line",
    color = input { default = "#57A1D0", type = input.color },
    width = input { default = 1, type = input.line_width}
}

local sourceSeries = inputs [source]

plot (ema (sourceSeries, period), "EMA", color, width)

Formula​

The formula for calculating EMA is:

image.png

The EMA function is calculated by multiplying the smoothing factor (α) by the current closing price (source) and adding it to the previous day's value. The smoothing factor, in its turn, is calculated by dividing 2 by (the period + 1).