Forex encyclopedia

Weighted Moving Average (WMA) is one of the configurations of simple moving average which accounts not only for price values but also their weight. Elements with an account of their values are summed and divided for the sum of weights of those elements, thus, generally speaking, arithmetical average of those elements is calculated. It is accepted that weight changes according to linear function where W1 takes the largest weight and then calculation uses simple arithmetical progression, for instance: 1, 2, 3, 4, 5, 6...; (or any other: 0,5, 0,75, 1, 1,25). Such representation is called Linear Weighted Moving Average, (LWMA).
Real average weekly earnings is the market indicator used in fundamental analysis. It is expressed in absolute terms and represents an index in relation to the previous period. The index slightly influences movement of prices, therefore, it is considered supplementary and can act as supportive to such indicators of fundamental analysis as major interest rates or non-farm. Real average weekly earnings accounts for inflation and is calculated in relation to 1982, which was conditionally taken for benchmark. Thus, this fundamental indicator can be considered as the inflation figure, which is caused by increase in earnings. Also it can perform as the indicator of rate consolidation: if increment of major interest rates of Central Bank is expected, then increase of earnings can tell about growth of national currency rate. Publication of data is made simultaneously with publication of Consumer Price Index at 8:30 a.m of New York time, regularly in the middle of every month.
New in Encyclopedia
Picture of the day
Morning pages
Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus