Abbreviation: Volume Advancing/Volume Declining Ratio: VolWgtAvg
Category: Market Volume Advance / Decline
Input Parameters:
| Name | Range | Default |
| Volume of Advancing Issues | ||
| Volume of Declining Issues | ||
| Total Volume | ||
| VolWgtAvg Periods | Int >= 1 | 5 |
Calculation:
VolWgtAvg(X, Total Volume, VolWgtAvg Periods)
where
X = Volume Advancing/Volume Declining Ratio(Volume of Adv Issues, Volume of Dec Issues)
Volume Advancing/Volume Declining Ratio represents Volume Advancing/Volume Declining Ratio (Upside/Downside Ratio)
VolWgtAvg represents Volume Weighted Moving Average
Discussion:
This indicator attempts to smooth the Volume Advancing/Volume Declining Ratio 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.