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The two types of moving averages are:

1. The Volume Moving Average Simple (VMAs) - the average volume over a specified number of periods;
2. The Volume Moving Average Exponential (VMAe) - applies to weighing factors to reduce the lag in simple moving averages.

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 listed the recommended VMA settings for different charting periods. We recommend you use these particular VMA settings - they have proven to be effective in signalling coming market trend reversals.

Table #1: Recommended VMA settings Period SBV VMA Period Fast VMA Slow VMA 1 bar value Intraday Indicators  2-Hour Period 1-20 bars 1-20 bars 40-100 bars 1 minute  1-Day Period 5-30 bars 5-30 bars 60-100 bars 1 minute Short-Term Indicators  5-Day Period 7-25 bars  7-25 bars 70-200 bars 5 minutes  15-Day Period 7-25 bars 7-25 bars 70-200 bars 15 minutes  30-Day Period 7-25 bars 7-25 bars 70-200 bars 30 minutes  60-Day Period 7-25 bars 7-25 bars 70-200 bars 1 hour Mid-Term Indicators  3-Months Period 3-8 bars 3-8 bars 40-80 bars 1 day  6-Months Period 3-8 bars 3-8 bars 40-80 bars 1 day  1-Year Period 3-8 bars 3-8 bars 40-80 bars 1 day  1.5-Year Period 3-8 bars 3-8 bars 40-80 bars 1 day  2-Year Period 3-8 bars 3-8 bars 40-80 bars 2 days Long-Term Indicators  3-Year Period 3-8 bars 3-8 bars 40-80 bars 3 days  4-Year Period 3-8 bars 3-8 bars 40-80 bars 3 days  5-Year Period 3-8 bars 3-8 bars 40-80 bars 5 days  7-Year Period 3-8 bars 3-8 bars 40-80 bars 7 days  10-Year Period 3-8 bars 3-8 bars 40-80 bars 10 days  Weekly 3-8 bars 3-8 bars 40-80 bars 1 week  Monthly 3-8 bars 3-8 bars 40-80 bars 1 month

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