The Modified Moving Average (MMA) is a commonly used financial tool similar to the Exponential Moving Average (EMA). The key difference between the two is the period of the functions used to calculate them. For example, a 14-day MMA is equivalent to a 27-day EMA. Despite this difference, the MMA and EMA are designed to give more weight to recent prices, giving investors and analysts a more accurate picture of market trends. The calculation of the MMA involves applying a percentage of today's closing price to the previous moving average value, similar to the EMA. This results in a new average that is more responsive to recent price changes and better indicate current market conditions. Modified Moving Averages are commonly used in technical analysis to identify potential buy and sell signals, track the progress of a security over time, and make informed investment decisions.