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 see, P. J. Kaufman, The New Commodity Trading Systems and Methods, New York: John Wiley & Sons, 1978, pp. 58-64.Weighted Moving Averages