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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: Kagi charts
Kagi chart is one of the ways how quotes of financial instrument (currency, good, security) may be rendered. Kagi chart line follows the price in one direction until the tendency changes. Upon breakup of tendency, price moves to the right and a new Kargi line is built in the opposite direction, the second line is connected with the previous, horizontal bridge in the reversal point.
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