Weighted Moving Average (WMA)
The Weighted Moving Average is similar to a simple moving average but gives more weight to recent prices. This makes it more responsive to recent market moves.
Traders use WMA to identify trend direction and momentum. If price stays above the WMA, it suggests bullish conditions, while staying below it suggests bearish conditions.
If Axis Bank’s price bounces off its 20-day WMA multiple times, traders may treat it as a dynamic support line.
| Parameter | Description | Default Value |
|---|---|---|
| Source | Input price data series | - |
| Window | Number of periods for the indicator | 14 |