Abbreviation: Volume Advancing/Volume Declining Ratio: VolWgtAvg Diff
Category: Market Volume Advance / Decline
Input Parameters:
| Name | Range | Default |
| Volume of Advancing Issues | ||
| Volume of Declining Issues | ||
| 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 = 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 quantify movements in the Volume Advancing/Volume Declining 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.