Volume Weighted Moving Average (VWMA) - Indicator Formula


When the price of an asset is above the VWMA, or positive, this represents a bullish opportunity and is likely in an uptrend.


When the price of an asset is below the VWMA, or negative, this represents a bearish opportunity and is likely in a downtrend.


Calculation:


VWMA = SUMM( Price * Volume ) / SUMM( Volume )

Where:


SUMM = the sum for N periods


vwma.png

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