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VWMA

Source​

https://github.com/quadcode-tech/quadcodescript-library/blob/master/averages/ma_vwma.lua

Syntax Format​

vwma(series, period)

Overview​

VWMA (Volume Weighted Moving Average) indicates not only the price values but volume values as well. Moreover, the price values during high volume are given more weight in the Moving Average calculation.

Parameters​

ParameterTypePurpose
sourceseriesInput series, taken into calculation
periodnumericMoving Average period

Returns: series.

Example​

instrument { name = "Volume Weighted Moving Average", short_name = "VWMA", overlay = true, icon="indicators:MA" }

period = input (20, "period", input.integer, 1)
source = input (1, "source", input.string_selection, inputs.titles_overlay)

input_group {
    "VWMA Line",
    color = input { default = "#FF6C58", type = input.color },
    width = input { default = 1, type = input.line_width}
}

local sourceSeries = inputs [source]

plot (vwma (sourceSeries, period), "VWMA", color, width)

Formula​

The formula for calculating VWMA is:

image.png

The sum of the chosen price series and the volume value are divided by the volume values, assigned to different weight.