Glossary - ChicksX

Weighted Moving Average (WMA) is a moving average giving more significance to recent data points for trend analysis.

Weighted Moving Average (WMA) is a method in technical analysis that assigns more weight to recent data points, emphasizing their importance over older data. This helps in identifying trends more accurately by reducing the lag seen in simple moving averages. In a crypto/fiat exchange like ChicksX, WMA can be useful for traders to make informed decisions based on recent price movements. As the most recent prices have a greater impact, WMA is particularly effective for volatile markets where recent data is more relevant.