ClearPath Trader

Volume Weighted Moving Average

Moving average that weights each close by that bar's volume. Diverges from a same-length SMA when high-volume bars dominate the average.

Category: Volume · Complexity: ★★★☆☆ (3/5)

Tags: volume, live-overlay, volume

Live chart overlay: VWMA

Volume Weighted Moving Average chart illustration

Formula

VWMA_n = Σ(P_i·V_i) / Σ(V_i) over n bars

How to read

When VWMA sits away from a same-length SMA, high-volume bars are dominating the average — often institutional participation.

Limitations

Needs honest volume. Thin or synthetic volume (some FX/crypto feeds) distorts it.

Typical settings

20

Volume Weighted Moving Average is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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