Weighted Moving Average (WMA) – FX Replay Guide
On FX Replay, the Weighted Moving Average (WMA) is a responsive trend-following tool that emphasizes recent price action more than a simple moving average (SMA). It’s ideal for identifying short-term trend changes and dynamic support/resistance zones.
How to Use It in FX Replay:
Add the Indicator:
- In the Indicators tab, search and add "WMA" to your chart.
Configure the Period:
- Common periods include 9, 20, or 50 depending on your trading style.
- A shorter WMA (e.g. 9) will respond more quickly to price changes.
Interpret Signals:
- WMA rising → Uptrend
- WMA falling → Downtrend
- Price crossing above WMA → Potential buy
- Price crossing below WMA → Potential sell
Combine with FX Replay Tools:
- Use the WMA as a dynamic support/resistance line when placing trades.
- Backtest setups using FX Replay’s replay function and Position Tool to measure R:R accurately.
Example Setup:
- Apply a 5-period WMA to your chart.
- Observe price crossing and bouncing around it.
- Combine with an ICT-style FVG zone or AMD cycle timing for high-confluence setups.