V.11:12 (500-505): Weighted Moving Averages by Thomas Hutchinson and Peter G. Zhang, Ph.D.
Product Description
Weighted Moving Averages
by Thomas Hutchinson and Peter G. Zhang, PhD.
The moving average is well known and much used in the field of technical analysis, but it also has a flaw: its lack of flexibility. But it need not be fatal. First-time STOCKS & COMMODITIES contributors Thomas Hutchinson and Peter Zhang of MMS International present variations of moving averages to combat the lack of flexibility in simple moving averages and linearly weighted moving averages by introducing the general weighted moving average (GWMA).
Moving averages are used in most forms of technical analysis to forecast trends and to smooth data. Of these, the most widely used and best known is the simple moving average (SMA), which is the arithmetic mean or average of a series of prices over a period of time.
To take an example, let the lookback period be, say, five. Sum the last five periods and divide the result by five. For example, a five-period simple moving average of the Standard & Poor's 500 would be:
The moving average is well known and much used in the field of technical analysis, but it also has a flaw: its lack of flexibility. But it need not be fatal. First-time STOCKS & COMMODITIES contributors Thomas Hutchinson and Peter Zhang of MMS International present variations of moving averages to combat the lack of flexibility in simple moving averages and linearly weighted moving averages by introducing the general weighted moving average (GWMA).
Moving averages are used in most forms of technical analysis to forecast trends and to smooth data. Of these, the most widely used and best known is the simple moving average (SMA), which is the arithmetic mean or average of a series of prices over a period of time.
To take an example, let the lookback period be, say, five. Sum the last five periods and divide the result by five. For example, a five-period simple moving average of the Standard & Poor's 500 would be:
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |