Abbreviation: Short Sales Interest/Total Ratio: VolWgtAvg Diff
Category: Market Short Sales
Input Parameters:
| Name | Range | Default |
| Total Short Interest | ||
| Total Short Sales | ||
| Total Volume | ||
| VolWgtAvg1 Periods | Int >= 1 | 5 |
| VolWgtAvg2 Periods | Int >= 1 | 10 |
Calculation:
VolWgtAvg(X, Total Volume, VolWgtAvg1 Periods) – VolWgtAvg(X, Total Volume, VolWgtAvg2 Periods)
where
X = Short Sales Interest/Total Ratio(Total Short Interest, Total Short Sales)
Short Sales Interest/Total Ratio represents Short Sales Interest/Total Ratio
VolWgtAvg represents Volume Weighted Moving Average
Discussion:
This indicator attempts to quantify movements in the Short Sales Interest/Total Ratio 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.