
Volume Weighted MA (VWMA) Indicator
Volume Weighted Moving Average (VWMA) is a popular MT4 indicator for trend analysis. Shows the actual weighted moving average of the price.
CATEGORIES: TREND, MT4, SIGNAL, VOLUME
Updated on: 26.10.2023
The Volume Weighted MA (VWMA) represents a combination of volume data and the moving average of the price. This indicator works just like a standard moving average. The only difference is, it gives more weight to high volume bars compared to bars with lower trading activities.
VWMA is a versatile and flexible trend-following trading indicator. Besides beginners, experienced professionals also find this MT4 indicator easy and useful for analyzing market trends. Moreover, a volume-weighted moving average can also be treated as a dynamic support/resistance level of the price.
Volume weighted moving average suits all types of timeframes in MT4. Advanced traders apply VWMA in multi-timeframes for a better assessment of the market sentiment. Moreover, this indicator supports trading all types of financial instruments including forex, cryptos, stocks, commodities, metals, and more.
How to trade using the Volume Weighted MA indicator in MT4
After you download and install Volume Weighted MA in your MT4 platform, your chart will appear like the above image. The indicator appears as like as a regular moving average. If you’re familiar with SMA and EMA, you’ll find VWMA quite easy to trade with.