The use of Weighted Moving Average::
Every trader wish to earn profit from trading but it is not that easy as it looks. There are number of technical indicators, strategies and charts implemented to find the unique opportunity as well as accurate stock trading tips and stock future tips. One of the often-used technical indicators is weighted moving average. In year 1957, Robert Goodell invented the weighted moving average. This technical indicator gives more importance to the recent prices than the older prices. The data of the stock is then multiplied by the weight over each period. Here the weight is calculated by the number of periods selected. The technical analysts of Money Classic Research make use of this formula to calculate weighted moving average.
WMA = (Price * n + Price (1) * n-1 + ... Price (n-1) * 1) / (n * (n + 1) / 2)
Where: n = time period
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