Weighted Moving Average (WMA)

The Weighted Moving Average (WMA) is a technical analysis tool that smooths price data to help identify the underlying trend by giving greater significance to more recent data points. Unlike a Simple Moving Average (SMA) which assigns equal weight to all prices, the WMA applies a linear weighting. This means the most recent price receives the highest weight, the second most recent receives the second highest, and so on, in a straight-line progression. This method results in an average that responds more quickly to recent price action than an SMA, making it a valuable tool for traders focused on short- to medium-term momentum.

Function Syntax

=WMA(data, period)  

• data (array):
  Range of columns containing the date, Open, high, Low, close, volume data.
• period (number):
  Number of (periods) days over which to calculate the WMA.

Returns:
A two-column array of dates and their corresponding WMA values.

Output Example

Below is an example of the resulting array when applying the custom =WMA() function.