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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).
Popular article: Housing Starts Index
Real estate market of the USA plays a great role for its economy and in the results impacts on currency rate. There are two key reports for housing building among residents of the country, one of which represents the number of new constructions of houses - Housing Starts. This is a fundamental indicator that provides the amount of houses in process of construction. This index consists of three parts: single-family houses, townhouses or small condos and apartment buildings with five or more units. Every apartment is considered as a single unit. For example, multistorey house with 50 apartments is accounted as 50 new house units. It is also noteworthy that single-family houses amount to about 85% from total amount of new houses.
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Oscillator - Moving Average (OsMA)
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