WMA

Linear Weighted Moving Average

​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