Blog : WMA - Weighted Moving Average Indicator
WMA - Weighted Moving Average
Weighted Moving Averages (WMA) expand upon traditional Moving Averages and Exponential Moving Averages by assigning more weight to the most recent price data. This allows specific time periods to be weighted more heavily in the calculation, making WMA more responsive to recent price changes.
| WMA Inputs | |||
|---|---|---|---|
| Trend Following | Mean Reversion | ||
| Period | 20 | Period | 20 |
| Source | close | Source | close |
| WMA | Long - Entry Trigger | Long - Exit Trigger | Short - Entry Trigger | Short - Exit Trigger |
|---|---|---|---|---|
| Trend Following | Price crossover WMA | Price crossunder WMA | Price crossunder WMA | Price crossover WMA |
| Mean Reversion | Price crossunder WMA | Price crossover WMA | Price crossover WMA | Price crossunder WMA |
| WMA | Long - Entry Confluence | Long - Exit Confluence | Short - Entry Confluence | Short - Exit Confluence |
| Trend Following | Price > WMA | Price < WMA | Price < WMA | Price > WMA |
| Mean Reversion | Price < WMA | Price > WMA | Price > WMA | Price < WMA |