Volume Moving Average Weighted (VWMA) - Built-in Indicator Guide

Computes the volume-weighted moving average (VWMA) of a chosen source, typically close, and plots it as a blue line.

Overview

The VWMA indicator measures the average value of a source series where each bar’s price is weighted by that bar’s volume. It is meant for market situations where volume confirms price levels: high-volume bars influence the average more than low-volume bars, so the line reflects the volume-dominant price.

The script is minimal: it calls Vwma.new(src, length) and returns plot.Line(result[0], offset=offset). The line is overlaid on the main price pane, and the period, input source, and horizontal offset are configurable.

How it works

1. The indicator is declared with @indicator('VWMA', overlay_main_pane=True) so the line appears in the main chart pane.
2. Parameters are defined with decorators: length has min 1, src defaults to source.CLOSE, and offset is clamped between -500 and 500.
3. Vwma.new(src, length) updates the volume-weighted moving average series on each bar.
4. The expression result[0] reads the VWMA value computed for the current bar.
5. The returned plot.Line(result[0], offset=offset) draws one point of the blue line, shifted by offset if set.
6. The @plot.line decorator sets the line color to blue.

Mathematical model

Parameters

Code walkthrough

Indicator declaration and settings

Lines 6-10 of Volume Moving Average Weighted.indie5:

@indicator('VWMA', overlay_main_pane=True)  # Volume Weighted Moving Average
@param.int('length', default=20, min=1)
@param.source('src', default=source.CLOSE, title='Source')
@param.int('offset', default=0, min=-500, max=500, title='Offset')
@plot.line(color=color.BLUE)

This block declares the indicator name and places it on the main price pane. The @param.* decorators generate the settings UI for length, src, and offset, while @plot.line sets the output style to a blue line.

Algorithm call

Lines 11-12 of Volume Moving Average Weighted.indie5:

def Main(self, length, src, offset):
    result = Vwma.new(src, length)

Main receives the user-configured parameters. Vwma.new(src, length) creates and updates a series object.

Returning the plot

Lines 13-13 of Volume Moving Average Weighted.indie5:

    return plot.Line(result[0], offset=offset)

The script returns a plot.Line object for the current bar’s value. The offset argument is passed directly to the plot, shifting its horizontal placement without changing the VWMA calculation.

Reading the chart

• A single blue line is added directly onto the price chart because overlay_main_pane=True.
• The line value on the current bar is the volume-weighted average of src over the last length bars.
• The offset setting moves the line along the time axis for visual comparison; at 0 the line is aligned with the bars where it was computed.
• No markers, fill areas, or separate oscillators are produced by this script.

Implementation notes

• Vwma.new returns a series; this script reads only [0] for the current bar, while [1] would give the previous bar’s value.
• The offset parameter is passed directly to plot.Line, so it affects only the drawing step, not Vwma.new.
• Parameter constraints are enforced by the decorators: length must be at least 1, and offset is limited to the range -500 to 500.
• Because src is configurable, the same VWMA calculation can be applied to open, high, low, close, or other available source series.

FAQ

How do I change the VWMA period?

Use the length parameter in the indicator settings. It defaults to 20 and has a minimum value of 1.

Can I apply VWMA to something other than close?

Yes, change the src parameter in the settings. It defaults to source.CLOSE.

What does offset do?

It shifts the plotted line horizontally by the given number of bars without changing the VWMA values. The default is 0.

Full source code

Indie Script v5, the built-in indicator as shipped with TakeProfit. Add it from the indicators menu or copy the code into the platform’s script editor.

# indie:lang_version = 5
from indie import indicator, param, source, plot, color
from indie.algorithms import Vwma


@indicator('VWMA', overlay_main_pane=True)  # Volume Weighted Moving Average
@param.int('length', default=20, min=1)
@param.source('src', default=source.CLOSE, title='Source')
@param.int('offset', default=0, min=-500, max=500, title='Offset')
@plot.line(color=color.BLUE)
def Main(self, length, src, offset):
    result = Vwma.new(src, length)
    return plot.Line(result[0], offset=offset)