The formula to calculate the average is very simple ... Moving average is of three types, simple weighted and exponential. In this article, we will explain the methods to calculate all three ...
But if not, you need to calculate a weighted average trade price, because a simple average of the prices ... for an average trade price of $110. Here's the formula used to calculate the average ...
The EMA’s formula uses a weighting multiplier ... That tends to make the weighted moving average more accurate than the simple moving average, which puts equal weighting on all prices.
An exponentially weighted moving average reacts quicker to recent process changes than a simple moving average ... Below is the formula for the EWMA’s calculation: Where: Alpha = The weight ...