The Weighted Moving Average
is a variation of the moving
average in which each of the
periods being considered is given a different
weight. The more recent periods are given
more weight. For example a three period
moving average could be:
The forecast for period 'n'
is 0.5 times the result for period 'n-1'
plus 0.3 the result for 'n-2' plus 0.2 the
result for the period before that. Note
that the weights must sum to one.