Volume-weighted moving average (VWMA)
An average of the last N prices, each weighted by the volume that traded at it.
Formula
VWMA = Σ (Price × Volume) ÷ Σ Volume, over N bars
How to read it
Price above both the SMA and the VWMA, with the VWMA higher, means the heavier-volume bars were the higher ones.
How to use it
A trend line that leans toward the prices where the volume traded.
In Kereon
Charts · Superchart. Default length 20. A window with no volume draws nothing rather than falling back to a plain average.
Also called: volume weighted.