Welcome! In today's lesson, we will calculate the Exponential Moving Average (EMA) for Tesla ($TSLA) stock using Pandas. Understanding EMA will allow you to give more weight to recent stock prices, which can help you make smarter trading decisions compared to using a Simple Moving Average (SMA).

The goal of this lesson is to help you understand how to:

1. Handle and preprocess financial data.
2. Calculate the EMA.
3. Visualize the EMA using Matplotlib.

The Exponential Moving Average (EMA) is a type of moving average that places a greater weight and significance on the most recent data points. This makes it more responsive to new information.

In many trading strategies, the EMA is preferred over the SMA because it reacts more quickly to recent price changes, making it a reliable tool for identifying trends.

The formula for EMA involves:

• Current Price ($P$): The price at the current time.

• Previous EMA ($EM{A}_{previou}$): The EMA calculated at the previous time.