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8.15 Sine Weighted Moving Average

A sine weighted moving average (Sine-MA) applies weights to each day in the shape of the bulge in a sine curve from 0 to pi. For an N-day average the weightings are 

     /  1      \         /  2      \             /  N      \
sin |  --- * pi |,  sin |  --- * pi |, ..., sin |  --- * pi |
     \ N+1     /         \ N+1     /             \ N+1     /

The effect is that middle prices have the greatest weight (much like the TMA, Triangular Moving Average). The graph below shows the weights for N=10. In Chart SWMA is under “Low Priority” in the indicator lists.


Sine weights graph

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