As a third new weighted moving average I present the Volume-Volatility Weighted Moving Average.
The Volume-Volatility Weighted Moving Average (VVwma) calculates the average price over a certain period,
weighted by both volume and volatilty, Big volume doesn't necessarily move price a lot but is very important,
big price moves don't always need big volume but also have a lot of importance!
In this indicator both big volume moves as well as big price moves are factored in to calculate the ma behaviour.
The ma has a tendancy to quickly give an indication of a ranging vs trending market by angle of the ma.
In ranging market it quickly flattens out and could be used to filter out insignificant low volume/volatility moves
compared to regular ma's or the standard volume weighted ma
Another use of it could be as entry/exit signals or
as a means of a trailing stop or a hard exit for a strategy or
as a "baseline" to combine with other signals
feel free to experiment!!!
If you use the VVwma in your scripts or your work, a shoutout would be nice!!
Gr, JD.
#NotTradingAdvice #DYOR
The Volume-Volatility Weighted Moving Average (VVwma) calculates the average price over a certain period,
weighted by both volume and volatilty, Big volume doesn't necessarily move price a lot but is very important,
big price moves don't always need big volume but also have a lot of importance!
In this indicator both big volume moves as well as big price moves are factored in to calculate the ma behaviour.
The ma has a tendancy to quickly give an indication of a ranging vs trending market by angle of the ma.
In ranging market it quickly flattens out and could be used to filter out insignificant low volume/volatility moves
compared to regular ma's or the standard volume weighted ma
Another use of it could be as entry/exit signals or
as a means of a trailing stop or a hard exit for a strategy or
as a "baseline" to combine with other signals
feel free to experiment!!!
If you use the VVwma in your scripts or your work, a shoutout would be nice!!
Gr, JD.
#NotTradingAdvice #DYOR
Disclaimer.
I AM NOT A FINANCIAL ADVISOR.
THESE IDEAS ARE NOT ADVICE AND ARE FOR EDUCATION PURPOSES ONLY.
ALWAYS DO YOUR OWN RESEARCH!
JD.
You can contact me for info/access in PM or on Telegram: @jduyck
PLS, DON'T ASK FOR ACCESS IN THE COMMENT SECTION!
I AM NOT A FINANCIAL ADVISOR.
THESE IDEAS ARE NOT ADVICE AND ARE FOR EDUCATION PURPOSES ONLY.
ALWAYS DO YOUR OWN RESEARCH!
JD.
You can contact me for info/access in PM or on Telegram: @jduyck
PLS, DON'T ASK FOR ACCESS IN THE COMMENT SECTION!