The 12-day exponential moving average (EMA) is a technical analysis tool used to smooth out price data over a specific period, in this case, 12 days. Unlike a simple moving average, the EMA gives more weight to recent prices, making it more responsive to new information. This helps traders identify trends and potential reversals in the market. Traders often use the 12-day EMA in conjunction with other indicators to make informed decisions. It can be applied to various financial instruments, including stocks, commodities, and cryptocurrencies, to analyze price movements and enhance trading strategies.