Weighted Moving Average
a.k.a. WMA, Linear weighted moving average
A moving average that gives more weight to recent prices, so it reacts faster than a simple average.
A weighted moving average (WMA) cares more about what just happened. In a 5-period WMA, the latest price might count five times, the one before four times, and so on down to one. Add them up and divide by the total weights.
That makes it hug price more closely than a simple moving average, so it turns sooner, at the cost of more false signals in choppy markets. The exponential moving average does something similar with a different weighting formula.
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