Description:
Moving Averages are used to smooth the data in an array to help eliminate noise and identify trends. A Weighted Moving Average calculates a weight for each item in the array. The more recent items are assigned greater weights. The divisor is term factorial.
Formula:
Assuming a period of 3 and the
B(0) is the most recent bar, then the
average would be
Average
=( B(0) * 3 + B(1) * 2 + B(2) * 1)/3!
Parameters:
Period
Bars Back to calculate the Weighted MA
on the selected TimeFrame
Arguments:
OHLC
or Output Indicator of another study
Output Indicators:
WeightedMA
Example:
Study Name Expanded on
an Intraday Timeframe
I5_WeightedMA(10)_I5
This study
calculates the weighted MA
Intraday 5 minute timeframe over the
last 10 bars
The output indicators names are appended to the studyname,
that is if the studyname is sn1 then
the outputindicator is
sn1::WeightedMA
