Elastic Volume Weighted Moving Average

The Elastic Volume Weighted Moving Average is a trend indicator that uses average volume in its moving average calculation. The user may change the input (close), multiplier and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.

How To Trade Using Elastic Volume Weighted Moving Average

The EVWMA may be used in conjunction with other indicators as a trend indicator. No trading signals are calculated.

How To Access in MotiveWave

Go to the top menu, choose Study>Volume Based>Elastic Volume Weighted MA

or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.

Important Disclaimer: The information provided on this page is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security. Please see our Risk Disclosure and Performance Disclaimer Statement.

Calculation

//method = moving average (ma) user defined, default is SMA
//input = price (user defined, default is closing price)
//mult = user input, default 20
//period = user input, default 40
//index = current bar number, avVol = average volume
//prevE = previousEVWMA

avVol = ma(method, index, period, volume);
n = avVol * mult;
prevE = ifNull(price, EVWMA[index-1]);
Plot: EVWMA = ((n - vol) * prevE + volume * price) / n;