Assume a five bar average based on the bar’s close. Assume the past five closes are 45.25, 46.0, 44.5, 45.5, 47.0
Simple moving average calculation:
45.25 + 46.0 + 44.5 + 45.5 + 47.0 = 228.25
228.25 / 5 = 45.65
Weighted moving average example:
| Bar | Weight | * Price | = Weighted Price |
| 1 | 1 | 45.25 | 45.25 |
| 2 | 2 | 46.00 | 92.00 |
| 3 | 3 | 44.50 | 133.50 |
| 4 | 4 | 45.50 | 182.00 |
| 5 | 5 | 47.00 | 235.00 |
Weight Totals:
1 + 2 + 3 + 4 + 5 = 15
Weighted Price Totals:
45.25 + 92.00 + 133.50 + 182.00 + 235.00 = 687.75
Weighted moving average:
687.75 / 15 = 45.85
Exponentially smoothed moving average example:
Assume the previous bar’s exponentially smoothed moving average was 45.75 and that you’ve entered 5 for the exponential percentage.
Exponential percentage:
2 / (5 + 1) = .3333
Exponentially smoothed moving average:
(47.0 * .3333) + (45.75 * (1 - .3333)) = 46.1666