What is this indicator?
A moving average that gives more weight to recent prices and reacts faster to changes than SMA. That same speed of reaction also means it produces more false signals in choppy markets.
How to read the chart
When the indicator's main line takes on a clear direction, it usually confirms the market's dominant trend in that same direction; crossovers and changes in slope are the main points of focus.
Practical tip
It's best to use this indicator alongside a momentum indicator so that both trend direction and trend strength can be measured.