Inverse Distance Weighted Moving Average (IDWma)

Inverse Distance Weighted Moving Average (IDWma)

This multi-timeframe capable moving average discounts prices far from the average. It is smoother than SMA but follows price similar to an EMA of the same length.

It does have some overshoot and initial lag just like SMA, but converges to nearer to price than the corresponding EMA. The initial lag may be useful in a trailing stop and when the market has reversed direction.

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