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Applies exponential weighting over 100 periods, exposing the longer-term trend direction while retaining more sensitivity to recent price shifts than an SMA.
EMA 100 is a 100-period exponential moving average used to identify longer-term trends and filter short-term noise.
The 100-day Exponential Moving Average (EMA-100) calculates a weighted average of closing prices over 100 days, with recent prices receiving greater emphasis than older prices. This intermediate-to-long-term indicator bridges the gap between shorter-term EMAs and the critical EMA-200, providing additional context for medium-term trend analysis with faster response than the equivalent SMA.
The EMA calculation:
Multiplier = 2 / (Period + 1) = 2 / 101 = 0.0198 (2.0%) EMA = (Today's Close × Multiplier) + (Yesterday's EMA × (1 - Multiplier))
Why EMA-100 matters:
- Medium-term trend: Shows direction over approximately 5 months
- Between EMA-50 and EMA-200: Additional confirmation level
- Faster than SMA-100: Responds more quickly to trend changes
- Support/resistance: Can act as significant price level
Interpreting EMA-100:
- Price above EMA-100: Medium-term uptrend is intact
- Price below EMA-100: Medium-term downtrend in place
- Rising EMA-100: Sustained positive momentum over several months
- Falling EMA-100: Sustained negative momentum
EMA-100 in moving average hierarchy:
- EMA-50 above EMA-100 above EMA-200: Strong bullish alignment
- EMA-50 below EMA-100 below EMA-200: Strong bearish alignment
- Mixed positions: Transitional phase; exercise caution
Trading applications:
- Trend confirmation: Price above EMA-100 confirms intermediate uptrend
- Support testing: Watch for bounces off EMA-100 in uptrends
- Multiple EMA analysis: Combine with EMA-50 and EMA-200
- Breakdown signals: Break below EMA-100 may precede larger moves
EMA-100 vs. SMA-100:
- More responsive: Reacts faster to trend changes
- Earlier signals: Crossovers occur sooner
- Tighter tracking: Stays closer to current price action
Limitations:
- Less widely followed: Not as popular as EMA-50 or EMA-200
- Significant lag: Still slow to react despite EMA weighting
- False signals: Can whipsaw during extended consolidations
EMA-100 provides valuable intermediate-term context, particularly useful when EMA-50 and EMA-200 give conflicting signals. It adds another perspective for confirming trends and identifying potential support and resistance levels.