VAMA: A Velocity and Acceleration Moving Average
Summary
VAMA is a price indicator designed to incorporate velocity and acceleration into a moving average. It has three adjustable settings: the calculation period, the price series used, and whether to apply double smoothing. The document defines three difference terms based on an exponential moving average and lagged values, using fractions of the selected period. These terms describe changes in the smoothed price over progressively shorter intervals and are used in the indicator’s calculation.
The document shows examples with double smoothing enabled and disabled, but gives no formula for combining the difference terms into the final output and presents no performance evidence. It therefore offers only a partial account of the method. It does not explain how to interpret the indicator, define entry or exit rules, or compare it with standard moving averages. Any trading use would require consulting the full implementation and testing it on relevant data.
Key ideas
- VAMA is presented as a moving average built around price velocity and acceleration.
- The indicator allows users to choose a calculation period and applied price.
- Double smoothing can be enabled or disabled.
- Its calculation uses exponential moving averages at several period-based lags.
- The description omits the final combination formula and provides no trading results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.