Parameters
Overview
Section titled “Overview”Volume-Weighted Linear Moving Average has one primary parameter: Period (the number of bars used for smoothing). The standard setting (14-20 bars) works for most timeframes — shorter periods for scalping, longer for position trading.
VWLMA Period
What It Controls: The number of bars used to calculate the Volume-Weighted Linear Moving Average — determines how much price history influences the current value.
Default: 14 bars
How It Works:
- Lower values (5–10): More responsive to price changes, stays closer to price, more crosses
- Standard values (11–20): Balanced smoothing suitable for most strategies
- Higher values (21–50): Very smooth, fewer crosses, better for identifying major trends
What Happens at Extremes
Period = 5 (Very Short)
- MA hugs price closely — almost indistinguishable from price on higher timeframes
- Frequent crosses generate many signals, most are false
- Useful for scalping where you need immediate trend feedback
- Risk: too much noise makes it unreliable as a trend filter
Period = 50 (Very Long)
- MA is very smooth, capturing only major trend changes
- Crosses are rare but highly significant when they occur
- Excellent for position trading and major trend identification
- Risk: significant lag means you enter trends late and exit late
Timeframe Recommendations
| Timeframe | Recommended | Notes |
|---|---|---|
| 1-Minute | 5–9 | Very responsive for scalping |
| 5-Minute | 9–14 | Balanced for intraday |
| 15-Minute | 14–20 | Standard for day trading |
| 1-Hour | 14–20 | Standard for swing entries |
| 4-Hour | 20–30 | Balanced for position entries |
| Daily | 20–50 | Standard for position trading |