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SP
S&P 500 6,337.5 ▼ -0.28%
€$
EUR / USD 1.1452 ▼ -0.39%
NQ
NAS 100 22,918 ▼ -0.65%
₿
Bitcoin 66,612 ▲ +1.00%
Au
XAU / USD 2,318.4 ▲ +0.53%
£$
GBP / USD 1.3175 ▼ -0.06%
Ξ
Ethereum 2,042.5 ▲ +2.94%
DJ
US 30 42,518 ▼ -0.21%
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Technical Analysis Intermediate 1 min read

WMA

Definition
Weighted Moving Average — assigns custom weights to each period.

Weighted Moving Average (WMA) is a technical analysis indicator that assigns greater weight to more recent price data, making it more responsive to recent price changes compared to Simple Moving Average (SMA) or Exponential Moving Average (EMA).

WMA matters as it helps traders identify trends and make better-informed trading decisions by giving more importance to recent price action. For instance, a WMA with a 14-period weight of 0.9 will give more significance to the most recent period, making it highly sensitive to price changes.