Abbreviation: PosVolIndex VolWgtAvg
Category: Volume: Smoothed
Input Parameters:
| Name | Range | Default |
| Closing Price | Close | |
| Volume | Volume | |
| VolWgtAvg1 Periods | Int >= 1 | 5 |
| VolWgtAvg1 Periods | Int >= 1 | 10 |
Calculation:
VolWgtAvg(X, Volume, VolWgtAvg1 Periods) – VolWgtAvg(X, Volume, VolWgtAvg2 Periods)
where
X = PosVolIndex: Raw(Closing Price, Volume)
PosVolIndex: Raw represents Positive Volume Index: Raw
VolWgtAvg represents Volume Weighted Moving Average
Discussion:
This indicator attempts to quantify movements in the Positive Volume Index 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.