The indicator displays in the price chart two moving averages: Volume Move-Adjusted Moving Average and Weight Volume Move-Adjusted Moving Average, calculated by the formula:
VOMOMA = (MOMA + VOMA)/2 WEVOMO = (MOMA + VOMA + WMA)/3
where:
MOMA[i] = (Close[i-Period+1]*Diff[i-Period+1] + Close[i-Period+2]*Diff[i-Period+2] +... + Close[i]*Diff[i])/Sum(Diff)
VOMA[i] = (Close[i-Period+1]*Volume[i-Period+1] + Close[i-Period+2]*Volume[i-Period+2] + ... + Close[i]*Volume[i])/Sum(Volume)
WMA[i] = (Close[i-Period+1]*1 + Close[i-Period+2]*2 + ... + Close[i]*Period)/LSum
LSum = (Period+1)*Period/2
Diff[i] = Abs(Close[i] - Close[i-1])
The indicator has three input parameters:
- Period – calculation period;
- Show Volume Move MA – display Volume Move-Adjusted MA (VOMOMA);
- Show Weighted Volume Move MA – display Weight Volume Move-Adjusted MA (WEVOMO).
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