EMA MOVING AVERAGE FORMULA HOW TO

And we want to determine the exponential moving average of the values within our data set. Suppose we have a data set containing the monthly sales. Let’s take a sample scenario wherein we need to calculate the exponential moving average in Excel. However, we will use the previously calculated exponential moving average value as a basis for our calculation rather than the original values. And the exponential moving average reacts more significantly to recent changes in values than a simple moving average which applies equal weight to all values.įurthermore, the exponential moving average is similar to the weighted moving average, which also assigns greater weight to more recent data values. So an exponential moving average is a moving average that gives emphasis and more weight to the most recent data values in a data set. So we will utilize the exponential moving average formula and apply it in Excel. Unfortunately, there is no built-in function in Excel that will automatically calculate the exponential moving average.

In this case, we will focus on calculating the exponential moving average in Excel. Furthermore, this will allow us to perform fewer mistakes, as Excel will give a warning when encountering an error in calculations. Since it has several built-in functions and tools, Excel is an excellent tool to use when doing long and complex calculations.

EMA MOVING AVERAGE FORMULA HOW TO

How to Calculate an Exponential Moving Average in Excel.

A Real Example of Calculating an Exponential Moving Average in Excel.

Ema moving average formula