Weighted Moving Average Trading Strategy or WMA strategies for Stock Market and Forex Day Trading Explained
Official Trading Rush Website: https://tradingrush.net
Download Official Trading Rush APP (Thanks): https://bit.ly/tradingrushapp
Support the Channel on Patreon (Thanks): https://www.patreon.com/tradingrush
Trading Merch for Best Traders: https://teespring.com/stores/trading-rush

Watch More Videos:

Trading Rush All Uploads : https://youtube.com/playlist?list=PLuBdu9GKAoP6nIjNTJGQgWEay_AeJlmeQ

Trading Strategies Tested 100 Times : https://www.youtube.com/playlist?list=PLuBdu9GKAoP4shAZd6QnM5BJUy1-IcnyD

Trading Strategies : https://www.youtube.com/playlist?list=PLuBdu9GKAoP6MEtX7stfzTGx62M5r3F4Z

Trading Tips and Mistakes : https://www.youtube.com/playlist?list=PLuBdu9GKAoP6lPl2txSXE8AlkhiwgWU2O

MACD Trading Strategy tested 100 times : https://youtu.be/nmffSjdZbWQ

Download Excel Sheet for Day Trading : https://youtu.be/fLKd7uKZOvA

Read Trading Rush Disclaimer: https://tradingrush.net/disclaimer/

Subscribe For More Videos.

Is the Weighted Moving Average better than the Simple or Exponential Moving Average in Trading? What is the Weighted Moving Average Trading Strategy, and can we really make money with it? Well, why don’t we understand the WMA and the strategy based around it, and in the next video, I’m going to test the Weighted Moving Average 100 times to find its win rate.

This is what the Weighted Moving Average looks like. If you plot the WMA on its own, you probably won’t see anything different from other moving averages out there. But if you plot the Weighted Moving Average with the Exponential and Simple Moving Average, you will notice something. The WMA is used to find the direction of the trend so traders can look for buying or selling opportunities in the direction of the trend. The Weighted Moving Average gives more importance to the latest data than the past data. The exponential moving average also gives more importance to the latest data, but the exponential and Weighted Moving Averages are calculated differently and will show different values on a chart. If you have watched the Exponential and Simple Moving Average videos on the Trading Rush Channel, you already know that the Exponential Moving average is faster than the Simple Moving Average. But as you can see on this chart, the Weighted Moving Average is even faster than the Exponential Moving Average in some cases. It will stick close to the candles and will show the potential trend reversal faster than the other two moving averages.

If the Weighted Moving average reacts to price quickly, does this mean it will give faster and better entry signals than the Exponential and Simple Moving averages? Well, that depends on what kind of strategy we create with the Weighted Moving Average.

Since this is a moving average, many traders will look for buying opportunities when the price is above the Moving Average because it can indicate an uptrend. And if the price is below the moving average it can indicate a downtrend, and many traders will look for opportunities to go short.

This is a 200 period weighted moving average, and some traders will immediately buy or close their short position when the price crosses above the 200 WMA. And traders will create a new short position or will close their long position when the price crosses below the 200 Weighted Moving Average.

This strategy can be good for long-term investors, but we need something better.

We know that the Weighted Moving Average is faster than the simple moving average, and most of you know that there is a widely used moving average strategy called the Golden Cross Trading Strategy. We even tested the Golden Cross Strategy 100 times on the Trading Rush Channel to find its win rate. The win rate we got after 100 trades was profitable. Check out the Golden Cross Video to learn more.

In that Golden Cross Video, we used the simple moving average. But instead of using a simple moving average, what will happen if we use the weighted moving average which is much faster. Will we get better entry signals? Well, we will find that out in the next video when we take 100 trades with it…

Subscribe for more Trading Rush !!
Like and Share the Video to see More Stock Market Intraday Trading Strategy and Forex Day Trading Strategies

Comments

Comments are disabled for this post.