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Apply Weighted Moving Average Indicator

The weighted moving average gives each data point a weight proportionate to its number in the sequence and divides by the sum of its weights. The calculation for a 3-bar weighted moving average is:

(1 x price_1) + (2 x price_2) + (3 x price_3) divided by 6, where 6 is the sum of the weights (1 + 2 + 3).

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To apply a Weighted Moving Average

  1. From within a chart, from the Edit menu select Studies.
  2. Choose Weighted Moving Avg. and Add the study.
  3. Complete parameters as necessary.