Moving Averages - Weighted

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).