weighted average means that each value is multiplied by the corresponding weight, and then the total sum is obtained, and then divided by the total number of units. The size of the weighted average depends not only on the value (variable value) of each unit in the population, but also on the number of occurrences (frequency) of each value. Because the number of occurrences of each value plays a role in weighing its influence in the average, it is called weight.

Meaning:

Weight is a relative concept, which is aimed at an indicator. The weight of an index refers to its relative importance in the overall evaluation. Weight means the quantitative distribution of the importance of different aspects of the evaluated object in the evaluation process, and the role of each evaluation factor in the overall evaluation is treated differently. In fact, an evaluation without a focus is not an objective evaluation.

Application:

There are many forms of "weight" in the weighted average, and because. Right "change, the result will be very different, his particularity, more and more people's attention, the application is more and more extensive.

Application in futures:

On the one hand, if the futures price is higher than the weighted average, the latter is moving up slowly or rapidly, which implies 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, the latter is slowly moving down or rapidly moving down, which means that the market situation will be easy to fall but difficult to rise or continue to fade.

on the other hand, if the futures price is higher than the weighted average, the latter is running in a narrow range or moving down. That is to say, the market situation will slow down or turn around and fall back.

on the contrary, if the futures price is lower than the weighted average, the latter is running in a narrow range or moving up. The reason is that the futures price cannot be supported by the same moving direction of the weighted average due to the uptrend or downtrend, and the space for re-launching or re-falling will become limited. It should be noted that the weighted average will pull the futures price and prevent its increase or decrease from expanding.