Volume-Weighted Moving Average (VW-MA) is a Moving Average weighted by volume.
Standard moving averages use prices and simply ignore traded volumes. Volume-Weighted Moving Average indicator responds to this.
Note that unlike stock market, Foreign Exchange market is not centralized. Orders and volumes are not shared among brokers. As a consequence, volumes used in Volume-Weighted Moving Average are depending on your broker. However, ECN accounts are the solution.
ECN (stands for Electronic Communication Network) can be described as a bridge between market participants with liquidity providers through an ECN broker. All orders and volumes are centralized. Using Volume-Weighted Moving Average indicator with an ECN account will result into more global results.
