200-Week Weighted Moving Average (WMA)

3 天前

The 200-Week Weighted Moving Average (WMA) is a long-term technical indicator designed to smooth price data over the past 200 weeks while giving greater weight to recent price movements. Unlike the Simple Moving Average (SMA), which applies equal weight to all data points, the WMA emphasizes more recent prices, making it more responsive to current market trends.

Key Features:
Focus on Long-Term Trends:
Helps traders and investors identify the overall market direction over a long-term horizon (approximately four years).

Weighted Responsiveness:
Provides a more dynamic reflection of recent price activity compared to the 200-week SMA.

Support/Resistance Levels:
Often used to identify key levels of support or resistance in the market.
Breaks above or below the WMA may signal potential trend reversals.

Multi-Timeframe Usability:
Useful across different timeframes but specifically designed to work on weekly data for long-term analysis.

Application in Trading:
Bullish Indicator: When the price is above the 200-week WMA, it indicates a long-term uptrend.
Bearish Indicator: When the price is below the 200-week WMA, it suggests a long-term downtrend.
Reversal Signals: Crossovers or significant deviations from the WMA can act as triggers for potential trend changes.

This indicator is ideal for traders and investors focusing on macro trends, helping them make informed decisions about long-term market positions.