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The volume-weighted moving average indicator
The (VWMA) main advantage is that it helps identify solid points of entry in a trend. In a nutshell, you don't have to use the (VWMA) in conjunction with any other indicator. The (VWMA) indicator can stand on its own two feet as each price is weighted with its volume.

In simple terms
The volume-weighted moving average (VWMA) gives the moving average (SMA) greater importance to "volume" by weighing prices with respect to "trading activity" in a predefined period of time. Define the time period & you are halfway there.

Here's the crunchy bit
The value of this indicator increases when the goldilocks, length, & offset, are sharply coded. Define those two preferences & it's all over red rover. Here's the kicker, during periods of low trading activity, the values of simple moving averages (SMA) & the volume-weighted moving average (VWMA) are almost similar. Knowing this can be used to your advantage.

Skate.

<blockquote data-quote="Skate" data-source="post: 1200245" data-attributes="member: 57364">The volume-weighted moving average indicator The (VWMA) main advantage is that it helps identify solid points of entry in a trend. In a nutshell, you don&#039;t have to use the (VWMA) in conjunction with any other indicator. The (VWMA) indicator can stand on its own two feet as each price is weighted with its volume.In simple termsThe volume-weighted moving average (VWMA) gives the moving average (SMA) greater importance to &quot;volume&quot; by weighing prices with respect to &quot;trading activity&quot; in a predefined period of time. Define the time period &amp; you are halfway there.Here&#039;s the crunchy bitThe value of this indicator increases when the goldilocks, length, &amp; offset, are sharply coded. Define those two preferences &amp; it&#039;s all over red rover. Here&#039;s the kicker, during periods of low trading activity, the values of simple moving averages (SMA) &amp; the volume-weighted moving average (VWMA) are almost similar. Knowing this can be used to your advantage.Skate.</blockquote>

[QUOTE="Skate, post: 1200245, member: 57364"] [B]The volume-weighted moving average indicator [/B] The (VWMA) main advantage is that it helps identify solid points of entry in a trend. In a nutshell, you don't have to use the (VWMA) in conjunction with any other indicator. The (VWMA) indicator can stand on its own two feet as each price is weighted with its volume. [B]In simple terms[/B] The volume-weighted moving average (VWMA) gives the moving average (SMA) greater importance to "volume" by weighing prices with respect to "trading activity" in a predefined period of time. Define the time period & you are halfway there. [B]Here's the crunchy bit[/B] The value of this indicator increases when the goldilocks, length, & offset, are sharply coded. Define those two preferences & it's all over red rover. Here's the kicker, during periods of low trading activity, the values of simple moving averages (SMA) & the volume-weighted moving average (VWMA) are almost similar. Knowing this can be used to your advantage. Skate. [/QUOTE]

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