Introduction
A weighted moving average is 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 the calculation of a 5day weighted
moving average.
5
Day Weighted Average 
Day# 
Weight 

Price 
Weighted 




Average 
1 
1 
* 
25.00 
= 
25.00 




2 
2 
* 
26.00 
= 
32.00 




3 
3 
* 
28.00 
= 
84.00 




4 
4 
* 
25.00 
= 
100.00 




5 
5 
* 
29.00 
= 
145.00 




Totals 
15 
* 
133.00 
= 
406.00 
/ 
15 
= 
27.067 
Each of these moving averages can be shown against the
existing candlestick graph or it can be plotted with each other
