Volume-Weighted Moving Average Using Average Price-Volume

Summary

The indicator implements a moving average attributed to Buff Dormeier. It first calculates volume multiplied by closing price, then takes a simple moving average of that value and divides it by a simple moving average of volume over the same configurable period. This produces an average price weighted by trading volume across the calculation window.

The document names the period as its sole input and gives the calculation, but provides no interpretation rules, trading signals, market examples, or performance evidence. It is therefore a compact definition of an indicator rather than a tested strategy. The text also does not discuss data handling, such as missing volume observations, or how the measure compares with other volume-weighted averages.

Key ideas

• The calculation averages closing price multiplied by volume over a configurable period.
• It divides that average by the average volume for the same period.
• The period is the only input parameter described.
• The document supplies no trading rules or performance evidence.

Tags

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