suneetk/tradingview_indicators huggingface dataset:
# Volume-Weighted Moving Average (VWMA)

#### Definition

The Volume-Weighted Moving Average (VWMA) indicator is great for analyzing volume. If you use the Simple Moving Average (SMA) or the Volume Weighted Average Price (VWAP), you’re already well on your way to understanding the complexity of the VWMA. The VWMA is also useful for tracking price-volume, identifying trends, and looking at weighted volume over any period of time. 

#### Calculations

The following formula can be used to calculate the VWMA:

![](https://s3.amazonaws.com/cdn.freshdesk.com/data/helpdesk/attachments/production/43152591107/original/fzlQgRuO4aWvWjo1mLEmYpq-nz933VzamA.png?1598372045)

#### Definitions:

VWMA = Volume-Weighted Moving Average

C = Closing price

V = Volume

The Simple Moving Average (SMA) is an average based on the past n closing prices. It gives the same weight to each closing price within the equation. The VWMA is quite similar, except it gives a different weight to each closing price and depends on the volume of that period. Note that if the volume of a 3-day VWMA (V3) is higher, then its closing price (C3) will have more effect on the calculated value in the end.

#### Takeaways

A Moving Average (MA) has many uses and is quite versatile. It’s slope can be used to filter trends, it can determine momentum when compared to price, and it can also identify support or resistance levels. With this in mind, however, we should know that the VWMA is not like most moving averages (i.e. SMA, EMA) and should not be deployed as such.

The VWMA has unique integration with volume data and therefore needs to be considered separately from other MAs that don’t share that criteria. By using the VWMA with the SMA for example, traders could maximize their use of analysis tools and highlight volume signals, identify the impact of adding volume data, and include volume weighting to ease trades.

#### What to look for

Typically, the VWMA indicator shows volume increasing along with the market trend and decreasing against it. When using the VWMA and SMA in tandem, if the VWMA is above the SMA, it generally means that volume is higher (has been) on the days when the market closed higher. This is also known as up days. Conversely, if the VWMA is below the SMA, it could mean that there was higher volume for days when the market closed lower (down days).

#### Summary

The Volume-Weighted Moving Average indicator is useful for tracking price-volume, determining weighted volume in relation to market trends, and highlighting volume signals and data. The VWMA is best used with other technical analysis indicators and price patterns, and specifically when paired with the SMA indicator.
# Weighted Moving Average

#### Definition

Weighted Moving Averages (WMAs) were developed to expand upon traditional Moving Averages and Exponential Moving Averages. By adding more weight to the most recent price data of Moving Averages (MAs), Weighted Moving Averages are used to weight specific time periods in it calculation more than other time periods.

#### Calculations

![](https://s3.amazonaws.com/cdn.freshdesk.com/data/helpdesk/attachments/production/43156669763/original/aEhEBkdIltRVVA_RaBxRVoqKz8UD6ugPgw.png?1599750579)

#### Takeaways

John J. Murphy explained the Weighted Moving Average in his writing titled, "Technical Analysis Of The Financial Markets,” published by the New York Institute of Finance in 1999. Murphy showed how the EMA “addresses both of the problems associated with the simple moving average.” To start, the Weighted Moving Average uses the most recent data available with a greater weight added. It is therefore referred to as a Weighted Moving Average (WMA). In turn, the WMA “assigns lesser importance to past price data,” although it includes all data found throughout “the life of the instrument” into its calculation.

#### What to look for

With the Weighted Moving Average, users are able to adjust the weight assigned to the indicator, so that it holds greater or lesser weight to the most recent day’s price. This weight is then added to a percentage of the prior day’s value, and the sum of the two will be equal to 100.

#### Summary

The Weighted Moving Average is useful to determine key price points and visualize a smoothed line with specific weights assigned to it. It accomplishes this by utilizing greater or lesser weight, depending on user preference, and applying it to the most recent price data available on the chart. More information on Moving Averages can be found here.
# Vortex Indicator

#### Definition

The Vortex Indicator consists of two lines that signify uptrend (VI+), commonly depicted as green, and downtrend (VI-), commonly depicted as red. This indicator is specifically used to determine trend reversals and confirm current trends and direction.

#### History 

Developed by both Etienne Botes and Douglas Siepman, the Vortex Indicator was first introduced in the January 2020 edition of the “Technical Analysis of Stocks & Commodities” magazine. 

#### Calculations

The Vortex Indicator has four main parts for its calculation. We go through these sections in depth a bit more below.

True range (TR) is the greatest of the following:

*   Current high - current low
*   Current high - previous close
*   Current low - previous close

Uptrend and downtrend movement can be determined with the following trendlines calculations. It is also worth noting that they are usually displayed below a candlestick chart. 

*   VM+ = absolute value of current high - prior low
*   VM- = absolute value of current low - prior high

Parameter length (n) is a result of trader preference. Traders commonly select parameters between 14 and 30 days. The calculations for parameter length are as follows:

*   Sum of the last n period’s true range (VM+ and VM-)
*   Sum of the last n periods’ true range = SUM TRn
*   Sum of the last n periods’ VM+ = SUM VMn+
*   Sum of the last n periods’ VM- = SUM VMn-

Creating the VI+ and VI- trendlines. Lastly, traders will need to use the following formulas to calculate the two trendlines of the Vortex Indicator. By repeating this process daily, the trendlines will form.

*   VIn+ = SUM VMn+ / SUM TRn
*   VIn- = SUM VMn- / SUM TRn

#### Takeaways and what to look for

The Vortex Indicator is best used with other indicators, tools, and reversal trend patterns that help support a reversal signal.

Uptrends, or buy signals, occur when the VI+ line is below the VI- line and then crosses above the VI- to be the top trendline.

Downtrends, or sell signals, occur when the VI- line is below the VI+ line and then crosses above the VI+ to be the top trendline.

It is a general rule that whichever trendline is on top usually is the one which dictates a security’s position (being either in uptrend or downtrend). 

#### Limitations

Traders should be mindful when using the Vortex Indicator because VI+ and VI- crossovers can, at times, cause for a number of false trade signals to trigger. This is especially the case when price action is choppy and is not countered with smoothing indicators or tools. To remedy this, many traders have found it helpful to adjust the periods used in order to reduce the number of false signals being fired. If this is the case for you, try modifying your indicator settings and adjust the period to see if that gets you a better result.

#### Summary

The Vortex Indicator is based on two trendlines, VI+ and VI-, which signify uptrend and downtrend within the current market, respectively. This indicator can help determine trend reversals and confirm current trends and direction, highlighted in the position of the trendlines in relation to each other.