WMA (Weighted MA)

Weighted Moving Average (20) — short-term trend.

What is WMA?

Weighted Moving Average gives more weight to recent prices. WMA-20 reacts faster than SMA to price changes, useful for short-term trend detection on crypto instruments.

Parameters (20)

  • WMA-20: 20-period weighted average
  • Timeframes: 4h, 8h, or daily candles

Interpretation

  • Price above WMA: Uptrend confirmation
  • Price below WMA: Downtrend confirmation
  • Slope direction indicates momentum
  • Data refreshes periodically — not real-time

Trading Signals

  • Buy: Price crosses above WMA
  • Sell: Price crosses below WMA
  • More weight on recent data

Price Overlay

  • Close Price: Actual closing price (same Y-axis, dashed violet)
  • Price above WMA = uptrend confirmation
  • Price crossing WMA = trend change signal
  • Distance from WMA shows momentum strength

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