VWMA Cloud

A volume-weighted moving average (VWMA) cloud consisting of fast and slow VWMAs. The lines are dynamically colored based on their relative positions, forming a visual cloud that highlights bullish and bearish trends.

A normal moving average (SMA or EMA) weights prices equally (or by recency) and ignores volume, so it reacts the same regardless of how much trading occurred. A volume-weighted moving average (VWMA) weights each price by its trading volume, so high-volume moves shift the average more and low-volume moves shift it less. This makes VWMA more representative of where the market is actually trading and filters out weak, low-participation moves.