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 Investor/RT Tour ( more on Technical Indicators )
eVWMA - Elastic Volume Weighted Moving Average
The Formula . . . 

. . .more on Formulas 
eVWMA = [(N - v) * eVWMA.1 + v*p] / N

where...
   p = price
   v = volume of bar
   N = volume "period".  This period can either be specified (as a constant value) or computed as a multiple of the recent average volume.
 
The Presentation . . . 

. . . more on Charts 

Above is a 3-Minute Candlestick Chart of Dell Computer (DELL) .  The blue line represents the eVWMA using the preferences seen below.
 
The Preferences . . . 

. . . more on Preferences 

  • Volume Period - Volume total that is used to determine the period of the moving average.

  • Use Constant Value - Use a constant number for the volume period.

  • Use __ Period Average Volume x __ - Here, you can specify a multiple of the average volume to be used as the volume period.  The average volume will be computed using the bars and periodicity of the chart (simple moving average using period specified).  In a daily chart, the average will be the daily average volume, if in a 3-minute chart, it will be the average volume of 3-minute bars.

  • EVWMA Color - Color, thickness, and style of the eVWMA line in the chart.
 
The Description . . .
eVWMA is a statistical measure using the volume to define the period of the moving average.  It incorporates volume information in a natural and logical way.  The eVWMA can be looked at as an approximation to the average price paid per share.  The ability to "Use Average Volume" as your volume period, makes this indicator both symbol-independent and timeframe independent.  This allows the use to switch both timeframe and symbol without having to change the volume period.

A more complete description of the eVWMA can be found on page 52 of the June 2001 issue of Stocks and Commodities Magazine.

Prior to version 7.5, when the Volume Period was specified as "Use Average Volume x __", the average was always computed with a period of 40 (40 period moving average of volume). This period has now been made an option, and reads in the preferences as "Use __ Period Average Volume x __". Also, all three available values/periods in the Volume Period groupbox are now "Optimizable" (can be specified using V# variables). These values/periods include the Constant Value, the new volume smoothing Period, and Average Volume multiplier.