TREND INDICATOR
Linear Weighted Moving Average
A linearly weighted average that emphasises the newest observations.
Start with the input, not the story.
Recent price direction with weights that decline linearly through the lookback.
Plain-language formula
Multiply each price by its recency weight, sum the products and divide by total weights.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Research comparing different smoothing response speeds.
04 / WEAK REGIME
Where it struggles
Noisy intraday charts and unstable high-sensitivity settings.
Add a different measurement.
ATRPrice structure
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Optimising the period until historical turns look perfect.
A testable next step
Run a parameter-sensitivity grid and look for a broad plateau rather than a single best period.