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General TradingW
WMA
Weighted Moving Average, a technical indicator that calculates the average price over a specified number of periods while assigning linearly increasing weight to more recent data points. The WMA gives greater importance to the latest price action compared to a simple moving average, allowing it to react more quickly to trend changes. It is calculated by multiplying each price by a weighting factor based on its position in the lookback window, summing those products, and dividing by the sum of the weights.
Example
“The 10-period WMA turned down sharply as the stock broke below support, providing an earlier trend-change signal than the equivalent simple moving average.”