Exponentially Weighted Moving Averages

Exponentially Weighted Moving Averages

In the previous video, Abdulla covered simple or arithmetic moving averages. Here, Abdulla explains a similar concept: the weighted and exponential moving averages. He answers the questions: what are they, how are they calculated and how are they used?
Overview

The exponentially weighted moving average places differing weights on historic data. The rate at which the weights exponentially decrease is defined as the decay rate.

Key learning objectives:

  • Understand the difference between a simple moving average and an exponentially weighted moving average

  • Define the impact the decay rate might have on the output calculation

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.

Summary
logo-animationlogo-animationlogo-animation
Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

Related videos

Interest Rate Basics

Interest Rate Basics

Abdulla Javeri07:58

Join now to watch

This content is also available as part of a premium, accredited video course. Sign up for a 14-day trial to watch for free.