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Trading Terms

Triangular Moving Average

A valuable tool in finance, the weighted moving average assigns a gradually increasing weight to each day's data until it reaches a peak value. From there, the weight decreases in regular increments until it reaches zero. This allows for a more accurate representation of the data's overall trend, as the most recent data is given more weight. By dividing the sum of the weighted data by the number of variables, we can obtain a clearer understanding of the overall trend.

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