Trend

Weighted Moving Average

WMA

Assigns linearly increasing weights to bars, so the most recent close has the highest influence on the average. It sits between the SMA (equal weights) and EMA (exponential weights) in terms of responsiveness.

Tips

WMA responds faster than SMA to recent price action, making it useful as a dynamic support/resistance level in trending markets

Use a short WMA (e.g. period 9) as a signal line and a longer one (e.g. period 21) as the trend filter for crossover strategies

Parameters

Period

2 - 100