What Does EWMA Stand For?

EWMA stands for Exponentially Weighted Moving Average

EWMA, or Exponentially Weighted Moving Average, is a statistical technique used to analyze time series data by applying decreasing weights to past observations. This method emphasizes more recent data points while gradually reducing the influence of older data, making it particularly useful for tracking trends and smoothing out fluctuations in data over time. EWMA is commonly utilized in financial analysis, quality control, and forecasting to provide insights into underlying patterns and enhance decision-making.