Definition
Plain language
A running average of recent prices that counts newer numbers more heavily than older ones.
As stated in the literature
Recursively computed weighted average with geometrically decaying weights on past observations; EMA20 and EMA50 denote spans of twenty and fifty periods.
Also called: EMA, EMA20
Why it matters: It smooths out noisy measurements so a system can track real trends without overreacting to every fluctuation.
For example, a fitness app's 'recent pace' number leans on your last few minutes of running rather than jumping around with every single stride.
Heard on the show
“They call it the mutual-information Z-score with exponential moving average.”Episode 010 — When Reward Climbs But Reasoning Goes Generic: Diagnosing Template Collapse in Agentic RL