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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).
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