Volume Weighted Moving Average

The Volume Weighted Moving Average (VWMA) study calculates the average weighted price by volume over a period of N bars. The formula is as follows: SUM(vol*price)/SUM(vol). The user may change the input (close), period and shift.

How To Trade Using Volume Weighted Moving Average

No trading signals are calculated for this indicator.

How To Access in MotiveWave

Go to the top menu, choose Study>Moving Average>Volume Weighted Moving Average

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

//fastInput = price, user defined, default is close
//slowInput = price, user defined, default is close
//fastMethod = moving average (ma), user defined, default is EMA
//slowMethod = moving average (ma), user defined, default is EMA
//fastPeriod = user defined, default is 10
//slowPeriod = user defined, default is 20
//index = current bar number

fastMA = ma(fastMethod, index,  fastPeriod, fastInput);
slowMA = ma(slowMethod, index, slowPeriod, slowInput);
// Check to see if a cross occurred and raise signal.
buy = crossedAbove(fastMA, slowMA);
sell = crossedBelow(fastMA, slowMA);