Weighted Moving Average (WMA)
Moving average that linearly weights recent closes more than older ones — more responsive than SMA but smoother than raw price.
Formula
WMA = Σ(weight_i × Price_i) / Σ(weight_i), weight_i = n − (n − i)
The WMA assigns a weight of n to the most recent close, n − 1 to the prior close, and so on down to 1 for the oldest bar in the window. The weighted sum is then divided by the sum of all weights (n × (n + 1) / 2).
WMA is faster than SMA but slightly less reactive than EMA over the same period. It is less commonly seen in popular indicators but is the backbone of the Hull Moving Average and certain smoothed-momentum formulas.
Related Terms
Coppock Curve
Long-term momentum oscillator that sums a 14- and 11-month ROC then smooths with a 10-period WMA; designed to identify major bear market lows.
AdvancedExponential Moving Average (EMA)
Moving average that weights recent closes more heavily via an exponential multiplier, reacting faster to price changes than the SMA.
BeginnerRate of Change (ROC)
Percent change between the current close and the close n periods ago; positive values confirm upward momentum, negative values confirm selling pressure.
BeginnerSimple Moving Average (SMA)
Arithmetic mean of the last n closing prices — the simplest smoothing tool and anchor for countless other indicators.
Beginner