The Volume Moving Average (VMA) is a technical indicator calculating the average volume of trades over a specified period. It is used to smooth out the fluctuations in trading volume and provide a clearer picture of the overall trend. Traders can use the VMA to identify whether trading activity is increasing or decreasing over time and to confirm or challenge potential price movements. By comparing the current volume to the VMA, traders can also determine whether current trading activity is above or below average and adjust their strategies accordingly.
