|
Weighted Moving Average
Description
A weighted moving average is also designed to put more weight on
recent data and less weight on past data. A weighted moving average
is calculated by multiplying each of the previous day's data by a
weight. The following table shows how a 5-day weighted moving
average is calculated.
Note how the 5-day weighted moving average gives five times more
weight to today's price (i.e., 5 * 29) than to the price five days
ago (i.e., 1* 25).
|
