vwma

The VWMA weights price data by volume, giving more importance to periods with higher trading activity. This helps identify price levels where significant volume occurred.

Parameters

• source (source): Data series to calculate VWMA on - price field (close, open, high, low) or indicator output
• periods (int): Number of periods for the moving average
• Common values: 20, 50, 200

Formula

VWMA = SMA(field * volume, periods) / SMA(volume, periods)

This is equivalent to:
VWMA = Σ(field[i] * volume[i]) / Σ(volume[i])

Where the sum is over the specified number of periods

Examples

vwma(close, 20);  # 20-period volume-weighted MA
x = vwma(close, 50); close > x;  # Price above VWMA
vwma(hlc3, 20);  # VWMA of typical price

Returns

Volume-weighted moving average value

Notes

• More responsive to volume spikes than regular MAs
• Useful for identifying support/resistance at volume clusters
• Division by zero protection returns NULL