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WMA

Source​

https://github.com/quadcode-tech/quadcodescript-library/blob/master/averages/ma_wma.lua

Syntax Format​

wma(series, period)

Overview​

WMA (Weighted moving Average) assigns more weight to more recent price movements. This makes the WMA quicker to react to recent price changes and suitable for short-term strategies.

Parameters​

ParameterTypePurpose
sourceseriesInput series, taken into calculation
periodnumericMoving Average period

Returns: series.

Example​

instrument { name = "Weighted Moving Average", short_name = "WMA", overlay = true, icon="indicators:MA" }

period = input (9, "period", input.integer, 1)
source = input (1, "source", input.string_selection, inputs.titles_overlay)

input_group {
    "WMA Line",
    color = input { default = "#56CEFF", type = input.color },
    width = input { default = 1, type = input.line_width}
}

local sourceSeries = inputs [source]

plot (wma (sourceSeries, period), "WMA", color, width)

Formula​

The formula for calculating WMA is:

image.png

In the WMA formula, more recent price changes are given more weight, the “freshest” price value is assigned with a higher i value, reducing it gradually to less recent price changes.