> For the complete documentation index, see [llms.txt](https://docs.bancor.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bancor.network/about-bancor-network/security-and-audits/oracles.md).

# Oracles

### External Oracles

Bancor V3 does not use external oracles for price discovery.

### Internal Oracles

Bancor V3 pools calculate the EMA (**E**xponential **M**oving **A**verage).

The EMA is a type of [weighted moving average (WMA)](https://www.investopedia.com/terms/l/linearlyweightedmovingaverage.asp) that gives more weighting or importance to recent price data. The EMA is used to see price trends over time. 

{% hint style="info" %}
This was recently updated from the use of SMA (**S**imple **M**oving **A**verage) which included time as a factor in calculating the SMA rate. This new calculation (EMA), is more resilient to price manipulation even on smaller pools.
{% endhint %}