Mov Avg Volume-weighted (Indicator)

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Input Information

Name	Expression	Default	Description
Price	Numeric	Close	Value used in calculating the weighted moving average.
Length	Numeric	9	Number of bars to include in the calculation.
Displace	Numeric	0	Number of bars to displace the plot of the weighted moving average.

Market Synopsis

The Mov Avg Volume-weighted indicator calculates and plots a volume weighted moving average of prices, specified by the Price input, from each of the most recent number of bars specified by the Length input. This method of calculating a Moving Average gives greater weight to higher market volume for the symbol and a reduced weighting to lower volume. (A simple moving average gives equal weight to all the prices in the series.)

A moving average is generally used for trend identification. Attention is given to the direction in which the average is moving and to the relative position of prices and the moving average. Rising moving average values (direction) and prices above the moving average (position) would indicate an uptrend. Declining moving average values and prices below the moving average would indicate a downtrend. A displaced moving average plots the moving average value of a previous bar or later bar on the current bar.

This indicator is NOT displaced by default. Changing the input Displace to positive number displaces the plot to the left. Changing the input Displace to a negative number displaces the plot to the right.

Plot Information

Number	Name	Default Color	Description
Plot1	VMGA	Cyan	Plots the volume-weighted moving average value.

When applied to a chart, this indicator displays one plot in the same subgraph as the price data.