Volume weighted MA and VIDYA
文章出处：易坚 发布时间：2005-09-08
Addition to the MA post below .
Another type of MA is volume weighted MA (VWMA). The VWMA assigns a higher weight for the heavily traded day than a low volume day. The merit of thie VWMA is obvious if you consider trading volume is important. I have seen people incorporate VWMA in their personal indicators. Try it out.
VWMA(3) = (C1*V1/(V1 + V2 + V3) + C2*V2/(V1 + V2 + V3) + C3*V3/(V1+V2 + V3)
Anotehr commonly used MA is Chande's VIDYA which is a volitility adjusted MA. The formula for VIDYA is not very easy to descreibe and require a method to calculate volitility. It weigh more for the high volitility trading than low volitility trading action. Also the MA length is adapative meaning it is not fixed. The MA period (look back period) changes depends on the volitility. The original formula can't be found in Chande's book "the new Technical Trader".
Good luck in your trading!
Biobuck
Last edited by biobuck on 2005-2-16 at 13:35 ]
Another type of MA is volume weighted MA (VWMA). The VWMA assigns a higher weight for the heavily traded day than a low volume day. The merit of thie VWMA is obvious if you consider trading volume is important. I have seen people incorporate VWMA in their personal indicators. Try it out.
VWMA(3) = (C1*V1/(V1 + V2 + V3) + C2*V2/(V1 + V2 + V3) + C3*V3/(V1+V2 + V3)
Anotehr commonly used MA is Chande's VIDYA which is a volitility adjusted MA. The formula for VIDYA is not very easy to descreibe and require a method to calculate volitility. It weigh more for the high volitility trading than low volitility trading action. Also the MA length is adapative meaning it is not fixed. The MA period (look back period) changes depends on the volitility. The original formula can't be found in Chande's book "the new Technical Trader".
Good luck in your trading!
Biobuck
Last edited by biobuck on 2005-2-16 at 13:35 ]