Weighted Moving AverageThe Weighted Moving Average is a moving average of the stock price in which a weight has been assigned to the price of each of the previous periods so that the newer data contributes more to the average than the earlier prices. The weights of the earliest period is set to one, two for the next period, adding one to the weight for each of the consecutive periods.
You can select the number of periods from the dialog that appears when you click the edit study button. You can also offset the results backwards by a entering the number of periods in the offset box.
The weighted moving average is used in exactly the same ways as the more commonly used simple moving average and exponential moving average. It is deemed bullish when the WMA is below the current price, and bearish when it is above the current price.