Asymmetric Linear Weighted Moving Average Modes and Weight Profiles
Summary
The document introduces the Asymmetric Linear Weighted Moving Average (ALWMA), a moving-average indicator with a selectable calculation period, applied price, and weighting method. It describes four modes by where they assign the greatest weights within the lookback window. Regular mode weights the latest observation most heavily, while inverse mode gives the greatest weight to the earliest observation. Asymmetric mode concentrates weight around the middle; inverse asymmetric mode places the strongest weights at both ends and the least in the middle.
These alternatives change how the average responds to recent versus older prices and to observations near the center of the period. The document names the modes and references illustrations, but the text alone does not provide explicit equations, parameter guidance, trading rules, or tests of predictive performance. It is an indicator description, not evidence that any weighting mode produces better trading results. A researcher would need to inspect the implementation and evaluate each mode with suitable data and validation before using it in a strategy.
Key ideas
- ALWMA offers four weighting modes for observations within a calculation period.
- Regular mode assigns the greatest weight to the latest observation, while inverse mode favors the earliest.
- Asymmetric mode emphasizes the middle of the period.
- Inverse asymmetric mode gives the period endpoints greater weight than its middle.
- The description supplies no formulas or evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.