Weighted average is to multiply each value by the corresponding weight, and then add up to get the total value, and then divide it by the total number of units. The weighted average depends not only on the value (variable value) of each cell in the population, but also on the number of times (frequency) that each value appears. Because the number of occurrences of each value plays a role in weighing its influence in the average, it is called weight.

Because the weighted average is an average calculated according to different weights, it is also called weighted average. In daily life, people often understand "weight" as the "weight" of things.

Application in futures;

If the futures price is higher than the weighted average price, the latter is rising slowly or rapidly, which means that the market situation will be easy to rise but difficult to fall or continue to improve. On the contrary, if the futures price is lower than the weighted average price, the latter will move down slowly or quickly, which means that the market situation will be easy to fall but difficult to rise or continue to fade.

If the futures price is higher than the weighted average efficiency, the latter is in a narrow range of fluctuation or downward. In other words, the market will slow down or turn around. On the contrary, if the futures price is lower than the weighted average price, the latter will run in a narrow range or upward, which means that the market situation will slow down the decline or turn around and pick up.