volume
Volume Moving Average
The Volume Moving Average tracks the average traded volume over N days, so you can spot unusual activity.
Default Params:period=20
What It Measures
Participation: whether a move happens with normal, light, or heavy volume.
The Math (Simplified)
Same math as a price moving average, applied to volume instead of price.
Default Inputs & Tuning
20 days is the standard baseline for 'normal' volume.
When It Works (Market Edge)
As a confirmation filter: breakouts and reversals on above-average volume are more meaningful than the same move on light volume.
When It Fails
Standing alone: volume alone has no direction. High volume into a falling price is bearish, not bullish.
Common Myths
Myth: High volume means a strong rally.
Truth: Volume only measures participation. High volume on a down day is strong selling. Always read volume against the direction of price.
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