Volume

Volume-Weighted Moving Average

VWMA

Computes a moving average of closing prices where each bar is weighted by its volume. Bars with heavy trading have more influence on the average, making VWMA faster to react during high-activity sessions than an equal-weight SMA.

Tips

Price above VWMA means recent high-volume activity was at higher prices—a bullish sign; below VWMA is bearish

VWMA and SMA diverging (VWMA pulling away) signals that volume is confirming the current price move

Parameters

Period

2 - 100