Volume Weighted Moving Average
Volume, VWMA
- What it shows
A moving average that gives more weight to bars with more volume.
- How it is built
Each close is multiplied by the volume of its bar, the products are summed over the period and divided by the total volume.
Default: Length 20, source close.
- How traders read it
- It sits closer to price where volume was high.
- A gap against a simple average shows volume is concentrated on one side.
- Read as any average: slope and price against it.
Related indicators
On Balance VolumePrice Volume TrendEase of MovementVolume Ratio