Weighted Moving Average |
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The linearly weighted moving average (LWMA)gives more weight to the more recent elements.   This moving average applies a weight of one to the first element in the period, a weight of two in the second element of the period and increasing weights to the remaining elements of the period. The resulting weighting is illustrated in the chart on the left. Notice the perfect staircase that is formed. The formula for the linearly weighted moving average is shown on the right.
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