VWMA (Volume Weighted Moving Average) – FX Replay Guide

The VWMA in FX Replay helps you analyze trend direction with volume sensitivity—ideal for filtering trades, confirming momentum shifts, and validating breakout strength. Unlike a simple moving average, the VWMA gives more weight to high-volume candles, making it powerful for volume-confirmed trend tracking.

How to Add It in FX Replay

• Open the Indicators panel
• Search for “VWMA” and apply it
• Choose your preferred period (e.g., 20 for short-term, 50 for swing setups)

How to Use VWMA in FX Replay

Trend Bias with Volume Context

• VWMA sloping upward → bullish momentum
• VWMA sloping downward → bearish momentum
• Use VWMA as a trend filter, especially during session opens or liquidity sweeps

Support/Resistance Behavior

• VWMA as Support: In an uptrend, price often bounces off VWMA
• VWMA as Resistance: In a downtrend, price often rejects from VWMA
• Watch for these reactions during backtesting to identify entry setups

Breakout Confirmation

• Breakout + VWMA rising → high-confidence breakout backed by volume
• Breakout + VWMA flat/falling → weak breakout, likely to fail

Volume-Powered Divergence

• Price rising + VWMA flattening/falling → momentum is weakening
• Price falling + VWMA climbing → hidden bullish strength, potential reversal

Confluence Tool

Pair VWMA with:

• RSI → to confirm momentum direction
• FVG zones / SMMA → for structural support or resistance
• Session Timing (e.g., NY Open) → to time entries during volatile periods

Pro Tip

In FX Replay, use VWMA to filter out low-quality moves:

• Only go long when price > VWMA and VWMA is rising
• Only go short when price < VWMA and VWMA is falling

When testing breakouts or reversals, tag VWMA behavior before, during, and after setups to spot patterns in volume-backed moves.