Fibonacci Weighted Moving Average (FWMA) Indicator Explained

The Fibonacci Weighted Moving Average (FWMA) weights bars by the Fibonacci sequence — 1, 1, 2, 3, 5, 8, 13… — so influence grows steeply toward the newest bars. It behaves like a WMA with an even harder tilt to recent action.

How It Works

• Fibonacci numbers assign the weights; the newest bars dominate the average.
• The steep weighting gives fast reaction to fresh moves with a longer stabilizing tail behind.
• One length input sets how many Fibonacci terms are used.

How to Trade It

FWMA suits fast crossover systems and short-period slope filters where you want a WMA-style response with slightly different noise character. As always with aggressive weighting, pair it with a volatility gate so chop doesn't churn the signal.

Building It in Setup.Cash

Add Fibonacci Weighted Moving Average (FWMA) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. See the moving averages primer for the weighting families. For the full category overview, see the advanced trend library guide.

Trend tools reward patience: pick one, pair it with a volatility or regime filter, and backtest before trading it live.