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Weighted Moving Average
(redirected from Weighted Moving Averages)

   Also found in: Encyclopedia 0.01 sec.
Weighted Moving Average
An average in which some values count for more than others, and in which less recent values are dropped off the average. For example, if an index is weighted for prices over the previous 20 days, this means that the average price of the stocks will move more when the values with higher price move and values are removed from the average after 20 days have elapsed. This helps correct for both outdated information and the fact that averages tend to be affected by extreme values.


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You might add trendlines, support and resistance, simple moving averages, weighted moving averages, stochastics, RSI, Fibonacci levels, oscillators, fractals - you want to add everything.
For each line, the summary statistics from the forecasts were compared, using the weighted moving averages and choosing [alpha] based on the minimum RMSPE criterion.
This article relies on the use of weighted moving averages, of which the inverse distance weighting (IDW) technique is the most common.
 
 
 
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