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Financial Terms

Exponential Moving Average

In the realm of finance, there exists a statistical measure known as exponential smoothing, which involves tabulating data and placing greater emphasis on more recent information. This method allows for a more accurate prediction of future trends, as it takes into account the most current data rather than placing equal weight on all data points. By utilizing exponential smoothing, financial professionals are able to make informed decisions based on the most relevant and up-to-date information available.
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