DEUSHARVEST
Weighted Moving Average (WMA)
The Weighted Moving Average (WMA) is a technical analysis tool that smooths price data to help identify the underlying trend by giving greater significance to more recent data points. Unlike a Simple Moving Average (SMA) which assigns equal weight to all prices, the WMA applies a linear weighting. This means the most recent price receives the highest weight, the second most recent receives the second highest, and so on, in a straight-line progression. This method results in an average that responds more quickly to recent price action than an SMA, making it a valuable tool for traders focused on short- to medium-term momentum.
WMA
=WMA(data, period) Example Usage
=WMA(A2:F500, 14)
Parameters
| Parameter | Type | Description | Status |
|---|---|---|---|
data | Range | Range of columns containing the date, Open, high, Low, close, volume data. | Required |
period | Number | Number of periods (days) over which to calculate the WMA. | Required |
Returns
A two-column array of dates and their corresponding WMA values.
