Coinlegs Academy
  • Coinlegs Academy
  • 🌡FUNDAMENTALS
    • MACD
    • Ichimoku
    • Relative Strength Index (RSI)
    • Commodity Channel Index (CCI)
    • Stochastic
    • Moving Average (MA)
      • SMA
      • EMA
      • WMA
      • SMMA
    • EMA Crossovers
    • Confluence of EMAs
    • Golden Cross/Death Cross
  • 🐰ADVANCES
    • TD Sequential
    • Super Trend
    • Bollinger Bands
    • Trend Reversal
    • Support/Resistance
    • On-Balance Volume (OBV)
    • Chaikin Money Flow (CMF)
    • Semarc
  • πŸ¦‹PATTERNS
    • Trend Line
    • Failure Swing
    • Double Bottom / DoubleTop
    • Triangle
    • Wedge
    • AB=CD Pattern
    • Elliot Waves
  • 🐒DIVERGENCES
    • RSI Divergence
    • OBV Divergence
    • CMF Divergence
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  1. FUNDAMENTALS
  2. Moving Average (MA)

WMA

Linear Weighted Moving Average

PreviousEMANextSMMA

Last updated 2 years ago

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​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.

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

P5 = first price close in the period

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