What is the role of the EMA (Exponential Moving Average) in this indicator?

What is the role of the EMA (Exponential Moving Average) in this indicator?

The EMA (Exponential Moving Average) in the Bulls Power indicator smooths out the highest price data over a specified period, making it less sensitive to short-term price fluctuations.

This smoothed value is then used to calculate the difference between the highest price and the EMA, providing insights into bullish momentum.