Post #4726 by Rabelais on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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Zee said:
What I shared was based on using a 9-Day Weighted Moving Average (WMA). What you've posted is using an Exponential Moving Average (EMA).

Using a different style MA would account for different signals. I went back and calculated the WMA-9 on the StockCharts data (they only provide SMA and EMA, which is probably why the link I got had EMA). The formula I'm using for WMA is (V1*9+V2*8+...V8*2+V9)/45, where V1 is the latest value.

Here's what I see:

Date      NH-NL      SMA-9       WMA-9       EMA-9 
10/31/25    -67                                    
11/3/25     -53                                    
11/4/25    -227                                    
11/5/25     -94                                    
11/6/25    -194                                    
11/7/25    -323                                    
11/10/25     54                                    
11/11/25     40                                    
11/12/25     78     (87.33)     (60.84)     (25.22)
11/13/25   -172     (99.00)     (77.78)     (54.58)
11/14/25   -286    (124.89)    (115.18)    (100.86)
11/17/25   -312    (134.33)    (152.60)    (143.09)
11/18/25   -333    (160.89)    (192.33)    (181.07)
11/19/25   -300    (172.67)    (220.16)    (204.86)
11/20/25   -357    (176.44)    (257.02)    (235.29)
11/21/25   -347    (221.00)    (291.13)    (257.63)
11/24/25     -1    (225.56)    (247.13)    (206.30)
11/25/25     97    (223.44)    (182.62)    (145.64)
11/26/25    184    (183.89)    (101.13)     (79.71)
11/28/25    131    (137.56)     (38.16)     (37.57)
12/1/25       9    (101.89)      (8.84)     (28.26)
12/2/25     -32     (68.44)       5.13      (29.01)
12/3/25      87     (25.44)      36.22       (5.80)
12/4/25     152      31.11       71.71       25.76 
12/5/25     166      88.11       98.69       53.81 
12/8/25     100      99.33      101.07       63.04 
12/9/25      54      94.56       92.00       61.24 
12/10/25    230      99.67      119.09       94.99 
12/11/25    265     114.56      152.16      128.99 
12/12/25     90     123.56      147.24      121.19 
12/15/25    -91     117.00      104.33       78.75 
12/16/25   -158      89.78       49.33       31.40 
12/17/25   -165      54.56       (1.62)      (7.88)
12/18/25   -106      24.33      (33.73)     (27.50)
12/19/25    -74       5.00      (53.40)     (36.80)
12/22/25     45       4.00      (45.40)     (20.44)
12/23/25    -49     (27.00)     (56.00)     (26.15)
12/24/25    -15     (58.11)     (53.60)     (23.92)

From this it looks like the WMA also went negative on December 17. Either I'm doing something wrong or the data is bad. Can you help set me straight?

Thanks,

JRB

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