◆ Indicator · Weighted Moving Average

Weighted Moving Average (WMA) : a faster average

The WMA gives linearly increasing weight to closes: the latest counts N times, the oldest once. This guide covers its calculation, how to read it and how to apply it on GraphTrade charts.

Live preview · ChartsLIVE

1 → N

linear weights

≈ EMA

speed

HMA

derived

01 · Indicator · Weighted Moving Average

What is Weighted Moving Average (WMA)?

The WMA gives linearly increasing weight to closes: the latest counts N times, the oldest once.

In responsiveness it sits between the slower SMA and the EMA.

02 · Indicator · Weighted Moving Average

The calculation

WMA = Σ (weight × close) / Σ weights, with weights from 1 to N.

The WMA is also the building block of the Hull Moving Average.

03 · Indicator · Weighted Moving Average

Reading the signals

Like other averages, its slope shows the trend and its crosses with price flag changes of direction.

It tracks reversals better than the SMA but gives slightly more false signals.

04 · Indicator · Weighted Moving Average

Settings and combinations

The WMA is adjustable in the Averages group. It pairs well with: Simple Moving Average (SMA), Exponential Moving Average (EMA), Hull Moving Average (HMA).

To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.

◆ Step by step

Get started in 4 steps

  1. 01

    Open a chart

    Search for an asset on the Charts page and pick a timeframe.

  2. 02

    Add the indicator

    Open Indicators, Moving averages group, then click Weighted Moving Average.

  3. 03

    Adjust the settings

    Change the parameters in the indicator sheet to suit your horizon.

  4. 04

    Confirm the signal

    Cross-check with the main trend and another indicator before concluding.

Apply on a chart

◆ FAQ

Your questions, clear answers.

01

WMA or EMA?

They are close; the WMA fully drops data beyond N.

02

Which period?

The same as for an SMA: 20, 50 or 100 depending on your horizon.

03

Where to use it?

On any timeframe, to follow a trend more closely.

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