Been looking into different indicators and came across weighted moving average. It seems to provide better signals than regular moving averages.
Does anyone use WMA in trading? Is it really worth it or just another fancy tool?
I tried it on practice trades but I can’t tell if it’s really helping.
WMA reacts faster to price changes than simple moving averages because it gives more weight to recent prices. This can help catch trend changes earlier.
The downside is that it may lead to more false signals due to its sensitivity. Regular MA can sometimes work better in choppy markets where reducing noise is essential.
Consider using WMA with a longer period like 20 or 50 to minimize fake signals while maintaining responsiveness.
Switched to WMA after blowing $300 on false signals with regular MA last month.
The faster response time caught me off guard initially. Made three bad trades in one day because I wasn’t ready for how quickly it moves.
But once I adjusted my timing, it helped me exit a losing position 20 minutes earlier than my old setup would have allowed.
WMA helped me improve my trades. I find it gives clearer signals than SMA.
Data shows WMA reduces lag by 33% compared to SMA. Test it against EMA too. Run 200+ trades for statistical significance.