EMA 50

The EMA 50 is an exponential average over the chart's last 50 candles. It shows the medium-term trend and separates corrections from trend changes.

Calculation

\mathrm{EMA}_t = \alpha\,C_t + (1-\alpha)\,\mathrm{EMA}_{t-1}, \qquad \alpha = \frac{2}{50+1} \approx 0.039

$C_t$ is the close of candle $t$ . The first value is the average of the first 50 closes; after that, each new candle enters with about 3.9%. It is calculated on the chart's candles: a little over eight days on the 4H chart, 50 days on the daily chart. The current candle counts at its current price.

What it is used for

As a medium-term trend filter: above a rising EMA 50, the trend is considered intact, and pullbacks to it a normal correction.
As support or resistance, where deeper pullbacks in a trend often stop.
In crossovers: with the EMA 20 for the short-term change, with the EMA 200 for the golden and death cross.

A close below an EMA 50 that has turned down is a much more serious signal than one below the EMA 20.

Settings

Setting	Default	Effect
Length	50	1–500 candles. The menu name stays, the line label shows the new length.

Tip For an EMA on a fixed timeframe, such as 50 days on the 4H chart, use the Exponential Moving Average (EMA) and its Timeframe setting.

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