A Weighted Moving Average shows the average value of a security's price over a period of time with special emphasis on the more recent portions of the time period under analysis as opposed to the earlier.

The average is calculated by multiplying each of the previous day's data by a weight factor. That factor is based upon the number of days past the first day used in the Moving Average, for example use five times more weight to today's price than to a price five days ago.

 

Calculation:

n = Period

 

Inputs: Please refer to Moving Averages 

 

Indicator Type: Trend