Average Volume

The average volume indicator displays a simple moving average of volume.

Average Volume Example

In this example, the average volume decreased when the price was in a trading range between 275 and 320 but started to increase again when the price broke out:

Average Volume Parameters

Period - the number of bars in the time period (default 50)

Average Volume Calculation

The calculation for each bar is as follows:

Sum ( Volume[Period bars ago thru current bar] ) / Period

In other words, if you are calculating a 50 day moving average over a hundred bars:

• the average for bar 50 is the sum of bars 1 thru 50 divided by 50
• and the average for bar 100 is the sum of bars 51 thru 100 divided by 50.

Try an average volume chart or an average volume screen.