EMA vs WMA: how two fast averages weight the price
The EMA and the WMA both care more about today than last week. The difference is how they forget the past, and that changes how they move on your chart.
The short answer
A Moving average smooths price into one line. The plain kind, the SMA, counts every bar the same.
The WMA (weighted moving average) gives each bar a fixed weight. The newest bar counts most, the next one a bit less, and so on down to the oldest. After the last bar in the window, old prices drop out completely.
The EMA (exponential moving average) also leans on the newest bar. But old prices never fully drop out. Their weight just shrinks a little every bar.
Side by side
| WMA | EMA | |
|---|---|---|
| Weights | Straight line: 5, 4, 3, 2, 1 | Shrinking by the same share each bar |
| Old prices | Drop out after the window | Fade but never fully vanish |
| Speed | Fast, often a touch faster | Fast |
| Smoothness | A little jumpier | A little smoother |
| How common | Less common on default charts | Very common, many default setups |
| In Pine Script | ta.wma(close, 20) | ta.ema(close, 20) |
| Used inside | The Hull moving average | MACD |
How the WMA works, with numbers
Take a 5-bar WMA. The newest close gets a weight of 5, the one before gets 4, then 3, 2 and 1. The weights add up to 15.
Say the last five closes, oldest to newest, were 10, 11, 12, 13, 14.
- 14 × 5 = 70
- 13 × 4 = 52
- 12 × 3 = 36
- 11 × 2 = 22
- 10 × 1 = 10
- Total = 190. Divide by 15 = 12.67
The plain 5-bar SMA of the same closes is 12. The WMA sits closer to the latest price because it leans on it.
How the EMA works, in plain words
The EMA uses a multiplier. For a 10-bar EMA it's 2 ÷ (10 + 1), about 0.18.
Each new bar, the EMA moves 18% of the way from its old value toward the new close. So the newest price matters most, and every older price matters a little less than the one after it.
Because the EMA only remembers its last value, an old price spike fades slowly instead of falling off a cliff. See EMA explained.
WMA: strengths and limits
The good parts:
- Quick to turn. The straight-line weights hug recent price.
- Clean window. A price from 21 bars ago has zero effect on a 20-bar WMA.
The limits:
- Jumpier. It can wiggle more in a sideways market.
- Less common. Fewer guides and default setups use it, so there's less to compare against.
EMA: strengths and limits
The good parts:
- Smooth but fast. A good middle ground for many traders.
- Everywhere. Most charting apps and many indicators use it, so it's easy to learn.
The limits:
- Long memory. A big old move still nudges it a little.
- Still lags. Like every average, it follows price. It never leads it.
The difference is small. On the same setting, a 20 EMA and a 20 WMA usually sit close together. The setting you pick changes your chart far more than the type.
Which fits you?
- You want the common choice: the EMA. More examples, more guides, fewer surprises.
- You want the fastest read on short charts: try the WMA, and accept a few more wiggles.
- You trade with the bigger trend: either works. Watch which side of the line price closes on, and whether it keeps making higher highs and higher lows.
Whatever you pick, test it the same way. Run it on past charts, write down every trade, and judge it over many trades, not three. See how to backtest a trading strategy.
Common mistakes
- Switching averages after a loss. The type of average rarely explains a losing trade. The entry and the stop usually do.
- Using the line as a signal on its own. A cross is a hint, not a plan. Mark the places price turned around first, and treat the line as a second opinion.
- Stacking five averages. They're built from the same prices, so they mostly agree. That's clutter, not proof.
- Forgetting the stop. No average decides your risk. Your stop does, and the position size calculator turns it into a size.
Questions
Is WMA faster than EMA?
On the same setting, the WMA often reacts a little faster because its weights lean hard on the newest bars. The gap is usually small, and it can feel jumpier in sideways markets.
What is the difference between EMA and WMA?
The WMA gives each bar a fixed weight that falls in a straight line and drops old prices after the window. The EMA shrinks the weight of older prices a little each bar, so they fade but never fully disappear.
Which moving average is best for day trading?
There's no single best one. Many day traders use an EMA because it's common and fast. The setting and how you use it matter more than the type, so test one choice on past charts.
Is WMA the same as the Hull moving average?
No. The Hull moving average is built from several WMAs to cut lag further. It uses the WMA as a building block, but it's a different line.
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