Line Weighted Moving Average
A weighted moving average is also designed to put more weight on recent data
and less weight on past data. A weighted moving average is calculated by
multiplying each of the previous day's data by a weight. The following table
shows how a 5-day weighted moving average is calculated.
| Day No. |
Weight |
* Price |
= Weighted Price |
| 1 |
1 |
25 |
25 |
| 2 |
2 |
26 |
52 |
| 3 |
3 |
28 |
84 |
| 4 |
4 |
25 |
100 |
| 5 |
5 |
29 |
145 |
| Totals |
15 |
133 |
= 27.067 |
Note how the 5-day weighted moving average gives five times more weight to
today's price (i.e., 5 * 29) than to the price five days ago (i.e., 1* 25).
Syntax:
Public Function LinearWeightedMovAvg(ByVal LWMAIn() As Double, ByVal Lag As Long) As Double
Parameters:
- ByVal LWMAIn() As Double
- ByVal Lag As Long
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Example:
Dim TA4Net As
New TA4Net.CTAFunctions("YOUR-REGISTRATION-CODE")
Dim Result() As
Double
Dim CloseValues() As
Double
' loading values to array
CloseValues =
GetCloseValues()
' calculating Technical Analysis function
Result = TA4Net.LineWeightedMovAvg(CloseValues, 14)
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