Sine Weighted Moving Average (SINWMA)

Overview

The Sine Weighted Moving Average represents a sophisticated approach to price smoothing that leverages the natural properties of the sine function. For an N-period average, weights are calculated using the formula Wi = sin(i × π / (N + 1)), where i represents each position from 1 to N. This creates a smooth, bell-shaped weight distribution from 0 to π, with the peak occurring at the middle of the dataset. Unlike linear or exponential weighting schemes that favor recent data, SINWMA assigns the greatest importance to the central values, making it particularly effective for filtering noise while preserving the core trend.

The unique characteristic of sine weighting creates a moving average that responds differently than traditional indicators. By emphasizing middle values over both recent and older data, SINWMA excels at identifying the underlying trend momentum without being overly influenced by the latest price spikes or ancient history. This balanced approach makes it similar to the Triangular Moving Average but with smoother weight transitions due to the sine curve's mathematical properties. The result is an indicator that provides cleaner signals for medium-term trend analysis and improved precision in identifying market tops and bottoms.

Interpretation & Trading Signals

Example Usage

Code examples will be available once the Rust implementation is complete.