How to use Volume Weighted Moving Average in Charts ... | Moving average volume
HowtouseVolumeWeightedMovingAverageinCharts×CloseWehopeyouenjoyreadingthispost.Doyouwanttotakeyourtradingtothenextlevel?DayTradeTheWorld™»TradingBlog»HowtouseVolumeWeightedMovingAverageinChartsMovingaverageisthemostcommontechnicalindicatorsinthetradingworld.Ifyouwatchfinancialtelevisionorreadfinancialcontent,youhavelikelyheardthecommentatorsandanalyststalkaboutit.Wehavecoveredmovingaveragesinthepast.Inourpastarticle,weguidedyouonhowtocalculatetheaveragesandhowtousetheminthemarket.PageContentsTheconceptofVolumeinTradingWhatistheVWMA,VolumeWeightedMovingAverageHowitisCalculatedVWMAFormulaVMWAstrategy:howtotradewiththisindicatorAnExampleinChartsAdvantagesoftheVolumeWeightedMovingAverageTheconceptofVolumeinTradingVolumeisanotherimportantconceptinthefinancialmarket.Tradersusethisconcepttoidentifythestrengthofatrend.Inherbook,Acompleteguidetovolumepriceanalysis,AnnaCoulingwritesthatvolumeisthekeyfoundationtoanytrader’ssuccess.Agoodwaytolookatthisistoconsideranexampleofastock.ThestockpriceofcompanyAcansoarby20%today.Ifthispriceactionisnotsupportedbymosttraders,thepricewillmostlycomebacklowerinthefollowingday.WhatistheVWMA,VolumeWeightedMovingAverageInthisreport,wewilllookatthevolumeweightedmovingaverage(VWMA),anindicatorthatcombinestheconceptofmovingaveragesandvolume.Wewilllookathowitiscalculatedandhowyoucanuseitinthemarket.HowitisCalculatedInourpreviousarticleonmovingaverages,wefoundthattheprocessofcalculatingasimplemovingaverageisrelativelyeasy.Youjusttaketheclosingpricesofanasset,addthem,andthendividebythenumberofperiods.Thevolumeweightedmovingaverageisrelativelydifferentbecauseitconsidersthevolumes.Herearethestepsyouhavetofollow:First,youneedtocalculatethetypicalpriceofanassetinaday.Youdothisbyaddingtheasset’shighest,lowest,andclosinglevel,andthendividethenumberbythree.Thesecondstepiswhereyoumultiplytheansweryougotinthefirststepbytheperiod’svolume.Youthendothisforalltheperiodsthatyouarecovering.Afterthis,youaddthesevalues,whichisknownasthecumulativetotal.Inthenextstep,
常見投資理財問答
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