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equation to calculate average. Calculating an average is one of the easiest to solve problems in math. To find your weighted average simply multiply each number by its weight factor and then sum the resulting numbers up.
The basic formula for a weighted average where the weights add up to 1 is x1 w1 x2 w2 x3 w3 and so on where x is each number in your set and w is the corresponding weighting factor. The numbers in the problem have to be added together and then divided. The EMA is also used as the basis for other indicators such as the MACD moving average convergence divergence indicator.
Average percentage formula The following is the formula that can be used to calculate most percentage averages.
Use AVERAGE and LARGE in Excel to calculate the average of the top 3 numbers in a data set. The numbers in the problem have to be added together and then divided. A commonly used trading indicator is the exponential moving average EMA which can be superimposed on a bar chart in the same manner as an SMA. The Calculation In general you calculate the mean or average of a set of numbers by adding them all up and dividing by how many numbers you have.