The key difference between a VWMA and a SMA is that a VWMA takes into account the trading volume for each period being considered. In other words, prices that occurred during periods of high trading volume are given more weight in the calculation than prices that occurred during periods of the low trading volume. To calculate a VWMA, you need to choose the period of time you want to consider, such as 10, 20, 50, or 200 days. Then, you multiply the price of each day by the trading volume for that day and add up the products. Finally, you divide the sum of the products by the total volume for the period being considered. The result is the VWMA for that period.
