Home >  Term: weighted moving average
weighted moving average

The average of prices over a certain period, but weighted to give more importance to the latest price. So, if it were a 5-day MA, the latest price might be weighted by a factor of 5, yesterday's by a factor of 4, the day before by 3 times, the day before twice, and before that, the simple price. Different weighting systems can be used.

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