Volume Moving Average

A Volume Moving Average (VMA) is like any simple moving average, except that it is applied it to volume rather than to price data. By smoothing out individual surges in the volume activity of an index, VMAs allow you to see the general trends and volume patterns of an index.

Study Type: Stand-alone

Description

VMAs are an important tool used in volume analytics. These charts allow you to determine, whether institutional and professional traders are currently buying or selling. This knowledge can help you make accurate predictions about the short-, mid-, and long-term trends of the index.

Parameters

  • Period: (10) - the number of bars, or period, used to calculate the study.