Exponential Moving Average

The Exponential Moving Average (EMA) weighs current prices more heavily than past prices. This gives the Exponential Moving Average the advantage of being quicker to respond to price fluctuations than a Simple Moving Average; however, that can also be viewed as a disadvantage because the EMA is more prone to whipsaws (i.e. false signals).
The chart below of eBay (EBAY) stock shows the difference between a 10-day Exponential Moving Average (EMA) and the 10-day regular Simple Moving Average (SMA):

 
The main thing to notice is how much quicker the EMA responds to price reversals; whereas the SMA lags during periods of reversal.
The chart below of the Nasdaq 100 exchange traded fund (QQQQ) shows the difference between moving average crossovers buy and sell signals with a EMA and a SMA:

As the chart above of the QQQQ's illustrates, even though EMA's are quicker to respond to price movement, EMA's are not necessarily faster to give buy and sell signals when using moving average crossovers.
Also note that the concept illustrated in the chart above with Exponential Moving Average crossovers is the concept behind the wildly popular Moving Average Convergence Divergence (MACD) indicator.
Since Exponential Moving Averages weigh current prices more heavily than past prices, the EMA is viewed by many traders as quite superior to the Simple Moving Average; however, every trader should weigh the pros and the cons of the EMA and decide in which manner they will be using moving averages.
Nevertheless, Moving Averages remain the most popular and arguably the most effective technical analysis indicator out on the market today.

Technical Strategy - EMA 5/13/62 Strategy

They are the core element of this strategy.  From the beginning you should understand that I didn’t invent the 5/13/62 strategy. At least I don’t think I did. There are some extras that I add in, but essentially, all of this information is available elsewhere. That said, I believe that most of the people that write about forex have a way of putting you and I to sleep.

So maybe this is the first time you’ve heard about it, but in any event, I’ll try to keep it interesting. Here’s where we start. With a chart:

1. Exponential Moving Average - EMA 5 (Red)
2. Exponential Moving Average - EMA 13 (Blue)
3. Exponential Moving Average - EMA 62 (Green)

You can easily see that when the 13 crosses below the 62, it seems like we are in a downward trending situation. The inverse is also true (although we cannot see it in the chart above): if the 13 crosses above the 62, it seems like we are in an upward moving trend.
That’s not quite everything, so we need to move on and do some more investigation.