stelaraX - VWMA

stelaraX – VWMA

stelaraX – Volume Weighted Moving Average (VWMA) is a trend-following moving average designed to weight price data by traded volume. By giving greater influence to high-volume price action, it reflects market consensus more accurately than simple or exponential moving averages.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The Volume Weighted Moving Average calculates the average price over a defined period while weighting each price by its associated volume.

Key principles:

* higher volume bars have greater influence on the average
* lower volume bars contribute less to the calculation
* the VWMA reflects price levels where market participation is strongest
* a simple moving average (SMA) can be used as a reference baseline
* divergence between VWMA and SMA highlights volume-driven bias

When VWMA is above SMA, buying pressure is often stronger. When VWMA is below SMA, selling pressure tends to dominate.

Visualization

The script plots:

* the Volume Weighted Moving Average directly on the price chart
* an optional simple moving average for comparison
* individually configurable colors for VWMA and SMA
* clean line rendering for clear trend interpretation

This comparative view makes volume influence on trend direction easy to recognize.

Use case

This indicator is intended for:

* identifying trend direction with volume confirmation
* distinguishing high-quality moves from low-volume noise
* acting as dynamic support and resistance
* filtering entries based on participation strength
* supporting trend-following and volume-aware strategies

It integrates well with price action analysis, structure-based systems, and AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.