QuantNomad - Elastic Volume Weighted Moving Average — Indicator by QuantNomad

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EVWMA is a quite interesting moving average where period of the MA is defined from volume itself.
It incorporates volume information in a natural and logical way. The eVWMA can be looked at as an approximation to the average price paid per share.

As a volume period you can use:
- Absolute volume value, for example floating number of shares. 134M for Tesla for example.
- Sum of the last x bars volumes.

Indicator was developer by Christian P. Fries, Ph .D.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

I think a very interesting use for this tool is comparing the trend of evwma versus vwap. Allow evwma to focus on the volume trend while vwap will obviously bring in the price trend as well. Then when the two are complementing each other the asset being studied will certainly have a trend bias.

https://www.tradingview.com/chart/0AOL6EHu/

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cooney_s

@cooney_s, Hey, it's interesting idea, can't see you chart using this link.

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I couldn't get the idea how floating of shares effecting the result here. Anyone can explain ?

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This is very good idea, would be interesting to compare with performance of volume oriented ma's

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I love anything volume, many thanks !

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