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Friday, 08/05/2016 1:06:17 PM

Friday, August 05, 2016 1:06:17 PM

Post# of 54666
ASTI VMA 3 MONTH DAILY .09 CENTS

VMAs are used to observe volume changes over time and have a smoothing effect on short-term volume spikes. A rising VMA indicates that a larger than usual number of shares have changed hands - for whatever reason (greedy buyers, panic sellers, etc.). Significant volume surges often precede trend reversals on the indexes. The higher a VMA's period, the more it will tend to smooth out volume spikes. In this way, the use of a high-period VMA will ensure that only the larger volume surges are reflected.

Longer-term VMAs - also called slow VMAs - are used to highlight long-term surges in volume production. If significant enough, such volume surges often precede long-term trend reversals on an index. Shorter-period VMAs - also called fast VMAs - are used to highlight shorter-term volume surges; these often precede short-term trend reversals.

Below, we have a stock chart where fast and slow volume moving averages applied to SPY stock volume. Comparing these two VMAs helps to recognize periods when a security's volume is below or above its longer term average volume. While there are many volume based technical indicators which use VMAs in their calculations, even simple visual analysis of two volume moving averages allows to see periods of abnormal trading activity which are usually caused by panic selling or greedy buying and which are usually noted at the end of up-trends and down-trends respectfully.
Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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