Moving Average Weighted, Volume Adjusted
October 17, 2022, 7:50 AM
Indicators
3 Comments
VAWMA = VWMA and WMA combined.
Simply put, this attempts to determine the average price per share over time, weighted heavier for recent values.
Uses triangular algorithm to taper off values in the past (same as WMA does).
Why use this?
Let’s say the earliest bar of the VWMA has a huge amount of volume . That means that when the next bar arrives, there will be an abrupt change in the moving average that doesn’t represent the current value properly. VAWMA eliminates this problem by triangular weighting each bar.
(description from original author: Electrified, all credits to him).
//PRC_VAWMA | indicator
//17.10.2022
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//converted from pinescript
// --- settings
len = 50 //Length
// --- end of settings
src = medianprice
sum = 0.0
vol = 0.0
for m = 1 to len // m = triangular multiple
i = len - m
v = volume[i] * m
vol = vol + v
sum = sum + src[i] * v
next
return sum/vol as "VAWMA"
Download
Filename:
PRC_VAWMA.itf
Downloads:
203
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