Excel Weighted Moving Average (WMA) with Customizable Weights

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A Weighted Moving Average (WMA) assigns more weight to recent data and less weight to past data. You can use a weighted moving average for any numeric data - stock prices, revenue, orders, support calls, temperature, and profit. A weighted moving average will follow data more closely than a Simple Moving Average (SMA). For example, if you are using an SMA and looking at the last 12 months, say January through December, December should have more weight than June, and June should have more weight than January. The weight decreases with each previous data point. The data points could be days, weeks, months, or years. You decide how many data points to move. In my video, I did 5 days, but I could have done 3 days or however many days I wanted to follow.

Chapters:
00:00 Introduction
00:41 What is a Weighted Moving Average?
01:46 Simple Moving Average
02:33 Weighted Moving Average
04:29 Add changeable weights
07:15 Example file
07:44 Closing remarks

Terms and abbreviations:
WMA - Weighted Moving Average
SMA - Simple Moving Average

Chris Menard Simple Moving Average video

Article from Fidelity Investment on WMA

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