What WMA shows
Like the SMA, but each newer candle counts a little more than the one before.
Indicator guide · Moving averages
Weighted Moving Average (WMA): what it shows, settings and how to read it.
Like the SMA, but each newer candle counts a little more than the one before.
How it is calculated
Each close is multiplied by its position in the window (the newest by N, the one before by N - 1, and so on), and the total is divided by the sum of those weights.
Usual settings
9, 20 and 50 are common. It is also the building block of the Hull Moving Average.
How traders read it
Read it like an EMA: slope for direction, price crossing it for a change of pace.
Where it fails
Rarely better than an EMA; choose one and stay consistent.
What to combine it with
The same tools as an EMA: a momentum indicator and a longer average as a trend filter.
Try WMA on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose WMA. Click its name on the chart to change the settings. It is free for every member.
More in "Moving averages": EMA · SMA · HMA · VWAP · All 25 indicators
Questions
Frequently asked questions
What is the WMA indicator?
Like the SMA, but each newer candle counts a little more than the one before.
What are the best settings for WMA?
The usual settings are: 9, 20 and 50 are common. It is also the building block of the Hull Moving Average. No setting is best in every market, so test a change on past data before relying on it.
Is WMA reliable on its own?
No single indicator is. Rarely better than an EMA; choose one and stay consistent. Most traders use it together with: The same tools as an EMA: a momentum indicator and a longer average as a trend filter.
How do I add WMA to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose WMA. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns