Modified on 2017/02/28 11:42 by Eugene — Categorized as: TASCIndicators


public VWMA(Bars bars, int period, string description) public static VMWA(Bars bars, int period, double deviations)

Parameter Description

barsBars object
periodIndicator calculation period


The Volume Weighted Moving Average (VWMA) is the same a simple moving average except that it gives different weight to each bar's price. The idea behind VWMA is to place a greater emphasis to the price in times of heavy trading activity.


Volume weighted moving average is calculated as follows:

VWMA = (Sum of Price * Volume for Lookback Period) / Sum for Volume for Lookback Period

For simplicity's sake, Wealth-Lab's implementation assumes the Close price as the basis price for calculating VWMA.


The VWMA is usually employed together with a comparable SMA. The difference between them shows the effect of volume weighting. Here is just a sample of trading ideas using the VWMA:


Please refer to April 2017 Traders' Tip article's code.