Weighted Moving Average

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Weighted moving averages give current data more weight than older data, thereby reducing the significance of older prices.  To do this, each price in a series is multiplied by the number of periods preceding it: the older the price, the smaller the multiplier.

 

 

Formula:

 

 

Where:

 

n = number of bars
 

Pt = current price

Pt-1 = previous price

MAt = current moving average value