Technical
What is VWMA (Volume-Weighted Moving Average)?
A 20-day moving average where each day's price is weighted by its volume β heavy days pull the average harder, defining the trend by where the money traded.
Formula
VWMA = Ξ£(Price Γ Volume, 20 days) Γ· Ξ£(Volume, 20 days)
How to Interpret
Compare it against the same-length SMA: VWMA above SMA means high-volume days have skewed bullish (conviction behind the move); VWMA lagging below while price rises means the rally is being carried on light volume.
Typical Ranges
A single enormous-volume day dominates the average for its entire window. Less standard than SMA/EMA, so it carries no self-fulfilling watched-level effect.
Find Stocks Using This Signal
Screen US and Indian stocks by VWMA in the Technical Screener.