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Weighted Moving Average (WMA)

Description

The Weighted Moving Average (WMA) places more emphasis on recent prices than on older prices. Each period’s data is multiplied by a weight, with the weighting determined by the number of periods selected.

Formula

WMA = ( Price * n + Price(1) * n-1 + ... Price( n-1 ) * 1) / ( n * ( n + 1 ) / 2 )

Where: n = time period

Example