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Question
What distinguishes an exponential moving average (EMA) from a simple moving average (SMA)?
1
An EMA incorporates trading volume; an SMA uses only closing prices
2
An SMA is used for bullish signals only; an EMA is used for bearish signals
3
An EMA weights recent prices more heavily, making it more responsive to new price data than the SMA
4
An EMA uses a longer historical period than an SMA to reduce short-term noise
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