Volume Weighted Moving Average (VWMA)
The Volume-weighted Moving Average (VWMA) emphasizes volume by weighing prices based on the amount of trading activity in a given period of time.
Users can set the length, the source and an offset. Prices with heavy trading activity get more weight than prices with light trading activity. In periods of low market volume, the SMA and the VWMA are close in value.
The indicator can be used to identify and trade trends.
Price crossing it could point to a directional change.
The VWMA is often used in combination with other signals and analysis techniques.