WMA
Type:
wma• Category:indicators
Description
Calculates Weighted Moving Average based on price list
Parameters
| Name | Type | Description | Required | Default |
|---|---|---|---|---|
dataExp | string | prices data | no | |
price | string | Price field to use to calculate WMA | no | |
timeperiod | number | Number of periods to use for WMA calculation | no | 30 |
Help
WMA (Weighted Moving Average)
Description
The WMA (Weighted Moving Average) worker is an indicator used in financial analysis to calculate the weighted moving average of a given price list. This indicator gives more importance to recent data points, making it a useful tool for identifying trends and patterns in financial markets.
What does this worker do?
The WMA worker calculates the weighted moving average of a given price list based on a specified time period. It takes three parameters:
dataExp: The prices data used for calculation.price: The price field to use for WMA calculation.timeperiod: The number of periods to use for WMA calculation.
How to interpret the results
The WMA indicator can be used to:
- Identify trends: A rising WMA indicates an upward trend, while a falling WMA indicates a downward trend.
- Detect patterns: WMA can help identify patterns such as crossovers, divergences, and convergences.
- Make predictions: By analyzing the WMA, traders can make predictions about future price movements.
How to use it
To use the WMA worker, simply provide the required parameters:
dataExp: The prices data used for calculation.price: The price field to use for WMA calculation.timeperiod: The number of periods to use for WMA calculation.
Example usage
Here is an example of how to use the WMA worker:
## Example usage
To calculate the WMA of a price list with a time period of 10:
* `dataExp`: `[{"date": "2022-01-01", "price": 100}, {"date": "2022-01-02", "price": 120}, ...]`
* `price`: `price`
* `timeperiod`: `10`
The WMA worker will return the weighted moving average of the price list for the specified time period.
Visualizing the WMA
For a visual representation of how to use the WMA worker, please see the following GIFs:
Full GIF
[](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)
Short GIF
[](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)
Additional Information
The Weighted Moving Average (WMA) is a type of moving average that gives more importance to recent data points. It is calculated by multiplying each data point by a weight, with the most recent data points receiving the highest weights. The WMA is a popular indicator used in technical analysis to identify trends and patterns in financial markets.