Definitions
In plain terms
A common technical-analysis variant gives linearly larger weights to newer observations.
Technical
The implementation freezes window, weight schedule, orientation, normalization, readiness, missing values, and rounding.
Scope
WMA does not universally mean linear newest-heavy weighting unless the schedule is declared.
Formula
WMA_t = sum(w_i * x_i) / sum(w_i) over W_tWMA_t=\frac{\sum_{i\in W_t}w_i x_i}{\sum_{i\in W_t}w_i}| Symbol | Meaning | Unit |
|---|---|---|
w_i | declared window weight | weight |
x_i | ordered observation | input unit |
W_t | moving window ending at t | observations |
Output unit: input unit
Examples
- A governed lesson uses Weighted Moving Average only with declared inputs, timing, parameters, and edge-case behavior.
Common misconceptions
- WMA does not universally mean linear newest-heavy weighting unless the schedule is declared.
Concept relationships
Where this concept is used
Evidence and governance
- Weighted Mean NIST · official standard
Supports: preferred label, short definition, technical definition, formula
Limits: The reference does not choose the newest-heavy linear weights used by one technical-analysis WMA convention.
- Reviewed by
- fintech-builder-batch-006
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.