Weighted Moving Averages

Jan 27, 2003
6
0
11
#1
Quick and stupid question - if you were plotting a moving average on a Forex chart (or any other chart come to that), why would you want to "weight" the MA and what would be the potential advantage of looking at this instead of a simple moving average?

Can anyone satisfy my curiosity?
 

Directional

Well-known member
Feb 17, 2005
1,992
251
93
#2
depending on the type of weighting, a weighted MA might turn quicker in some circumstances than a simple MA - this might be useful to you, or not, depending on your strategy
 

turtle trader

Active member
Sep 25, 2003
172
6
28
49
Altrincham
#3
Weighted (and Exponential) Moving Averages assign more significance to the most recent price bars -so if you consider the most recent price action to be more important than earlier action you might use a weighted or exponential MA.