Abbreviation: New Highs-New Lows Spread: VolWgtAvg
Category: Market New Highs / New Lows
Input Parameters:
| Name | Range | Default |
| New Highs | ||
| New Lows | ||
| Total Volume | ||
| VolWgtAvg Periods | Int >= 1 | 5 |
Calculation:
VolWgtAvg(X, Total Volume, VolWgtAvg Periods)
where
X = New Highs-New Lows Spread(New Highs, New Lows)
New Highs-New Lows Spread represents New Highs-New Lows Spread
VolWgtAvg represents Volume Weighted Moving Average
Discussion:
This indicator attempts to smooth the New Highs-New Lows Spread indicator by calculating its moving average. Since it uses a volume weighted moving average (which gives more importance to those periods with higher volume relative to the other periods in the moving average’s time frame), the smoothing is influenced more by periods of relatively higher volume than by periods of relatively lower volume.