EVWMA - trend indicator
EVWMA - indicatorwhich is an elastic volume-weighted moving average (hence the name). In fact, it is another interpretation on the theme of the good old Moving AverageTherefore, its main task is to get the best from the usual moving average and eliminate its disadvantages.
How is it different EVWMA indicator from a traditional average? First, EVWMA does not have an averaging period, instead it uses volume or time, so it can be considered as a self-adjustable indicator for different market conditions. At the same time, the volume information is taken into account by EVWMA in a natural way.
Commentary from ForTrader.org: EVWMA indicator has a mathematical justification and is recommended to be used as a trend line instead of traditional moving averages. However, some disadvantages should be taken into account: for example, "broken" appearance of the line, which does not allow to determine the strength of the trend.