The Weighted Moving Average study is a Moving Average indicator that shows the average value of the security price over a period of time with a heavier weighting given to the more recent price action.

The Weighted Moving Average is calculated by multiplying each of the previous days' data by a weight factor. That factor is equal to the number of days past the first day used in the Moving Average so that today's weight factor is the greatest, while the first day's factor is equal to 1. The total is then divided by the sum of the factors, for example, for the 5-day Weighted moving average, it is equal to 5+4+3+2+1=15.

Input Parameters

Parameter Description
price The price used to calculate the WMA.
length The number of bars used to calculate the WMA.
displace The displacement of the WMA study, in bars. Positive values signify displacement to the past.


Plot Description
AvgWtd The line of Weighted Moving Average.


*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.