{"id":662,"date":"2009-11-05T15:13:14","date_gmt":"2009-11-05T09:43:14","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=662"},"modified":"2009-11-05T15:13:14","modified_gmt":"2009-11-05T09:43:14","slug":"weighted-moving-average","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/weighted-moving-average\/","title":{"rendered":"Weighted moving average"},"content":{"rendered":"<p>A weighted average is any average that has multiplying factors to give different weights to different data points. Mathematically, the moving average is the convolution of the data points with a moving average function; in technical analysis, a weighted moving average (WMA) has the specific meaning of weights which decrease arithmetically<br \/>\nA weighted moving average is also designed to put more weight on recent data and less weight on past data. A weighted moving average is calculated by multiplying each of the previous day&#8217;s data by a weight. The following table shows how a 5-day weighted moving average is calculated.<\/p>\n<p><a class=\"highslide\" onclick=\"return vz.expand(this)\" href=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2009\/11\/weighted-moving-averrage.gif\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-663\" title=\"weighted moving averrage\" src=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2009\/11\/weighted-moving-averrage-300x203.gif\" alt=\"weighted moving averrage\" width=\"300\" height=\"203\" srcset=\"https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2009\/11\/weighted-moving-averrage-300x203.gif 300w, https:\/\/www.niftylivecharts.com\/blog\/wp-content\/uploads\/2009\/11\/weighted-moving-averrage.gif 502w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>The Weighted Moving Average WMA is measured by averaging all the previous values over the given period, (also the ongoing value). These values are weighted linearly (the oldest value gets a weight of 1, the next value gets a weight of 2, and so on up to the ongoing value, which gets the same weight as the period).<\/p>\n<p>Note how the 5-day weighted moving average gives five times more weight to today&#8217;s price (i.e., 5 * 29) than to the price five days ago (i.e., 1* 25).<\/p>\n<p>Moving averages can be used to see trends, that&#8217;s why they can also be used to predict if data is bucking the trend. A weighted moving average is measured by multiplying each of the previous day&#8217;s data by a weight. The weight in its turn is based on the number of days in the moving average. In this example, the first day&#8217;s weight is 1.0 while the value on the most recent day is 5.0. This gives 5 times more weight to today&#8217;s price than the price 5 days before.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weighted average is any average that has multiplying factors to give different weights to different data points. Mathematically, the moving average is the convolution of the data points with a moving average function; in technical analysis, a weighted moving average (WMA) has the specific meaning of weights which decrease arithmetically A weighted moving average [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[2183,2178,2184,2179,2185,2174,2182,2177,2176,2180,2175,2188],"class_list":{"0":"post-662","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-general","7":"tag-50-day-moving-average","8":"tag-exponential-moving-averages","9":"tag-forex-indicators","10":"tag-forex-moving-averages","11":"tag-moving-average-technical-analysis-1--3-31-37","12":"tag-moving-averages","13":"tag-moving-averages-charts","14":"tag-moving-averages-formula","15":"tag-simple-moving-averages","16":"tag-trade-moving-averages","17":"tag-trading-moving-averages","18":"tag-weighted-moving-average","19":"entry","20":"has-post-thumbnail"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=662"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/662\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}