1 It does not refer to an underlying averaging time period (for
example, 20 days, 38 days, 200 days). Instead, eVWMA uses share volume to define the period of the averaging.
2 It incorporates information about volume (and possibly time)
in a natural and logical way.
3 It can be derived from, and seen as an approximation to, a
statistical measure and thus has a solid mathematical justification.
I'll show you the concept and the formulation of the elastic volume-weighted
moving average, using an Excel spreadsheet as an example.
