Volume Adjusted Moving Average: Scaling Price Weights by Volume

Summary

The VAMA adapts its effective lookback to trading volume instead of using a fixed number of time bars. It compares each bar’s volume with an average-volume increment, scales the selected price by that ratio, and accumulates observations until a target volume-weight count is reached. The resulting weighted price average is intended to give busier bars more influence. The indicator plots fast and slow versions, with configurable price sources, lengths, volume factors, and sampling windows.

A strict option controls whether the calculation must meet its volume requirement even if that takes more bars; the non-strict alternative can stop at the specified length. The sample can use all available bars or a selected recent window. The document presents this as a research example, not a tested trading strategy, and notes that it may not redraw historical values on time-based charts. It provides no outcome data establishing predictive value.

Key ideas

• VAMA defines its effective averaging window by accumulated volume ratios rather than elapsed bars alone.
• Price observations are weighted according to volume relative to an average-volume increment.
• Fast and slow lines can use separate lengths, sources, factors, and strictness settings.
• The calculation’s sampling window affects the average volume used to form those ratios.
• The indicator is presented for research, with a caveat about historical redraw behavior on time-based charts.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.