Arms Ease of Movement: Volume Weighted MovAvg Difference

Abbreviation: ArmsEaseMovement VolWgtAvg Diff
Category: Volume: Smoothed
Input Parameters:

Name Range Default
High Price High
Low Price Low
Volume Volume
VolWgtAvg1 Periods Int >= 1 5
VolWgtAvg2 Periods Int >= 1 10

 
Calculation:

VolWgtAvg(X, Volume, VolWgtAvg1 Periods) – VolWgtAvg(X, Volume, VolWgtAvg2 Periods)

where
X = ArmsEaseMovement: Raw(High Price, Low Price, Volume)

ArmsEaseMovement: Raw represents Arms Ease of Movement: Raw
VolWgtAvg represents Volume Weighted Moving Average

 
Discussion:

This indicator attempts to quantify movements in the Arms Ease of Movement indicator by calculating the difference between two moving averages. Since it uses volume weighted moving averages (which give more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the indicator tends to focus more upon movement between periods of relatively higher volume than between periods of relatively lower volume.
 

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