DEFINITION of 'Linearly Weighted Moving Average'
A type of moving average that assigns a higher weighting to recent price data than does the common simple moving average. This average is calculated by taking each of the closing prices over a given time period and multiplying them by its certain position in the data series. Once the position of the time periods have been accounted for they are summed together and divided by the sum of the number of time periods.
INVESTOPEDIA EXPLAINS 'Linearly Weighted Moving Average'
For example, in a 15day linearlyweighted moving average, today's closing price is multiplied by 15, yesterday's by 14, and so on until day 1 in the period's range is reached. These results are then added together and divided by the sum of the multipliers (15 + 14 + 13 + ... + 3 + 2 + 1 = 120).
The linearly weighted moving average was one of the first responses to placing a greater importance on recent data. The popularity of this moving average has been diminished by the exponential moving average, but none the less it still proves to be very useful.

Closing Price
The final price at which a security is traded on a given trading ... 
Weighted
A mathematical process by which figures and/or components are ... 
Weighted Average
An average in which each quantity to be averaged is assigned ... 
Simple Moving Average  SMA
A simple, or arithmetic, moving average that is calculated by ... 
Exponential Moving Average  EMA
A type of moving average that is similar to a simple moving average, ... 
Fintech
Fintech is a portmanteau of financial technology that describes ...

How are moving averages used in trading?
Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages ... Read Full Answer >> 
What technical tools can I use to measure momentum?
One of the main goals of every trader using technical analysis is to measure the strength of an asset's momentum and the ... Read Full Answer >> 
What assumptions are made when conducting a ttest?
The common assumptions made when doing a ttest include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >> 
How are double exponential moving averages applied in technical analysis?
Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >> 
How do you know where on the oscillator you should make a purchase or sale?
Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >> 
What are the alert zones in a Fibonacci retracement?
The most commonly used Fibonacci retracement alert levels are at 38.2% and 61.8%. A 50% retracement level is also commonly ... Read Full Answer >>

Active Trading Fundamentals
Simple Moving Averages Make Trends Stand Out
The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trendspotting tool. 
Active Trading Fundamentals
Weighted Moving Averages: The Basics
We take a closer look at the linearly weighted moving average and the exponentially smoothed moving average. 
Chart Advisor
Healthcare Stocks Continue to Be a Good Bet
Here are four stocks in the healthcare sector that have already put up big numbers, and could still go higher, if they breakout to the upside. 
Fundamental Analysis
Explaining Price Targets
A price target is what an investment analyst projects a security’s future price to be. 
Fundamental Analysis
Present Value Interest Factor of Annuity (PVIFA)
PVIFA can be used to calculate the present value of a series of annuities by considering cash flows and depreciation. 
Chart Advisor
ChartAdvisor for July 30 2015
Weekly technical summary of the major U.S. indexes. 
Active Trading Fundamentals
Five Biggest Obstacles Facing FirstYear Traders
Address these five obstacles and you'll make significant progress as a firstyear trader. 
Options & Futures
How To Hedge Put Options Using Binary Options
Want to hedge your plain vanilla long put option position with binary call options? We show you how. 
Options & Futures
How To Hedge Stock Positions Using Binary Options
Here’s a stepbystep method to hedge your long (and short) positions in stocks, using binary options. 
Trading Strategies
Microsoft's Game of CatchUp With The Dow
Microsoft (MSFT) underperformed the Dow Jones Industrial Average during the 2002 to 2007 bull market, but it has played catchup in recent years.