What it does
The Volume Weighted Moving Average (VWMA) is a moving average in which each bar's close is weighted by its volume: the sum of price times volume over N bars divided by the sum of volume. Bars with heavy trading pull the average toward their price, while thin bars barely move it. Comparing VWMA to a same-length SMA reveals whether volume is concentrated on up moves or down moves.
Typedraws on the price chart
How to add it
Click Indicators (ƒx) in the header.
Search “Volume Weighted Moving Average” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Compare with the SMA: VWMA above the same-period SMA means volume favors the buyers; below it, the sellers.
- Use it as a volume-confirmed trend line: pullbacks holding above a rising VWMA show buyers defending with real size.
- Trade crossovers of a fast and slow VWMA for signals that require volume participation, not just price drift.
- Watch for VWMA-SMA convergence during a trend, which warns that the volume backing the move is drying up.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Len | number | 20 | 1–10000 |
| Source | select | close | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
| Offset | number | 0 | -500–500 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| VWMA(20) | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.
Tips
- Double-click any of its lines to jump straight into the settings dialog.
- Save the configured chart as a study template (Indicators menu) to reapply this exact setup elsewhere.
- Right-click the indicator's line for quick actions — settings, visibility and removal without hunting through menus.
Watch out for
- It needs trustworthy volume data and behaves oddly on instruments where volume is tick-based or fragmented across venues.
- It remains a lagging average and one anomalous high-volume bar can distort it for the rest of its window.