Weighted Moving Average
The Weighted Moving Average assigns linearly decreasing weights.
Usage
Use as the foundational smoothing module providing SMA, EMA, WMA, and SMMA implementations that power higher-level indicators across the library.
Background
The core smoothing algorithms — SMA, EMA, WMA — are the building blocks of nearly all technical indicators. EMA applies exponential decay weighting (alpha = 2/(n+1)), SMA applies uniform weighting over N bars, and WMA applies linearly increasing weights emphasizing more recent bars.
Parameters
period(default: 14): Smoothing period
Formula
\[
WMA = \frac{P_1 \times n + P_2 \times (n-1) + \dots}{n + (n-1) + \dots + 1}
\]