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Trend Indicator: Weighted Moving Average
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The n days weighted moving average is the weighted average of the closing prices of a stock during the last n days. The weighted moving average assigns weights to the price series so that the more recent prices have larger weights.

With:
P_t the closing price at the date t.
P_t-1 the closing price at the date t-1.
WMA_tn the n days weighted moving average at the date t.

The n days weighted moving average can be computed as follows:

Interpretation

When the price line cross the weighted moving average line from the top, it gives a sale signal. When it is from bottom, it gives you a purchase signal.

As for the moving average, the above signals are generally considered as valid if you have at the same time a trend change on the moving average line.

The weighted moving average is supposed to give more dynamic signals (see also exponential moving average).

Graph Example: weighted moving average

In blue you have the 50 days weighted moving average and in red the 50 days traditional moving average.