Weighted Moving Average of Volume

What is the Weighted Moving Average of Volume?

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This indicator applies the Weighted Moving Average to volume data. By giving more weight to recent volume readings through linear weighting, it tracks changes in trading activity with better responsiveness than a simple average. The WMA of Volume shows you the trend in market participation — whether recent trading sessions have been busier or quieter than those before them. That context helps confirm whether price movements are backed by genuine market interest.

How Does It Work?

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The bot computes the WMA on volume data and watches its slope. When the weighted volume average is rising (positive slope), it signals Buy — growing volume often supports price advances. When the slope turns negative (volume declining), it signals Sell. The linear weighting provides balanced sensitivity to recent volume changes.

Using It in BitThor

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Select Weighted Moving Average of Volume in your bot config. Use it as a volume confirmation tool: pair it with any price-based indicator to make sure trades only happen when volume conditions are on your side. Set the Indicator Factor weight lower than your primary price indicator.

Tips for Beginners

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• The WMA of Volume gives a balanced view of volume trends — more responsive than SMA Volume but smoother than EMA Volume.

• Use alongside any price-based moving average for a well-rounded strategy that considers both price and volume together.

• Volume trends often shift direction before price does. Watch for WMA Volume slope changes as early warning signs.

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Indicator by: BitThor | Learn more