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Learn how to calculate the weighted moving average (WMA), a technical indicator that assigns greater weight to recent data points. See examples, formulas, and compare WMA with simple moving average.
Learn how to calculate the weighted moving average (WMA) of a security's price over a specific period. The WMA gives more weight to recent data points than the simple moving average (SMA)...
Learn how to calculate the WMA indicator, which assigns varying weights to the price data of various trading periods. See the formula, examples, and how to use WMA for trading and investing.
Learn how to calculate the weighted moving average (WMA), a technical indicator that determines trend direction by assigning greater weight to recent data points. See the WMA formula, examples and how it differs from the simple moving average (SMA).
A Weighted Moving Average puts more weight on recent data and less on past data. This is done by multiplying each bar's price by a weighting factor. Learn more about weighted moving averages (wma) to help you make informed investing decisions.
We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average.
The sum of these products is then divided by the sum of all weights, which yields the average. The weighted moving average formula. The formula for a simple Weighted moving average (WMA) is as follows: WMA = (P1*W1 + P2*W2 + ….+ Pn*Wn) / (W1+ W2+ …..+ Wn) Where: P1, P2, Pn = the most recent to oldest prices
The formula for calculating a weighted moving average is as follows: Where: Pn – price of the n -th data point. wn – weight of the n -th data point. The sum of all weights is equal to 1. n – number of periods. The weights assigned to each data point typically follow a linear or exponential pattern.
The formula for WMA can be expressed as: WMA = (P1 * W1 + P2 * W2 + ... + Pn * Wn) / (W1 + W2 + ... + Wn) Where Pn represents the price at time n, and Wn represents the weight assigned to that price. Using the WMA indicator can provide several advantages over other moving average methods.
Learn how to calculate a weighted moving average (WMA) that attaches greater weight to the most recent data. See the formula, an example, and how to use WMA for trend analysis.