# WMA

​The WMA is a moving average that places more emphasis on recent price closes and less on past price closes.

When calculating this average, it assigns a multiplier to each price close during the period, which changes the weight and significance of the close. This multiplier is formed to give more importance to the final data.

<figure><img src="https://2914866832-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fhl8rNNc8ITxkCK2Qbq4R%2Fuploads%2FuSevgmyw0WgPBafX7p0h%2Fimage.png?alt=media&#x26;token=2faa6e78-4206-42aa-b3c2-b4c6bb0b43c0" alt=""><figcaption></figcaption></figure>

A 5 period WMA;

> WMA = (P1 \* 5) + (P2 \* 4) + (P3 \* 3) + (P4 \* 2) + (P5 \* 1) / (5 + 4+ 3 + 2 + 1)

P1 = last price close in the period&#x20;

P5 = first price close in the period