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 'n1'
plus 0.3 the result for 'n2' plus 0.2 the
result for the period before that. Note
that the weights must sum to one.
