Weighted Moving Average

From Boolean Trader
Jump to: navigation, search

Description

The Weighted Moving Average is similar to the Simple Moving Average but instead places more weight on more recent bars in the smoothing period and less weight on the oldest bars in the period.

It takes one parameter, the period n. Larger values for n will have a greater smoothing effect on the input data.

It is calculated for each bar as the weighted arithmetic mean of the previous n bars. For example, the weights w for an n of 4 are: 4, 3, 2, 1. The weights w for a n of 7 are: 7, 6, 5, 4, 3, 2, 1. So in that example, the most recent bar influences the average 7 times as much as the oldest bar.[1]

Syntax



Inputs

Outputs

Example Usage

Example Calculations

Chart

References