How To Add A Moving Average To Volume Bars

When it comes to examining volume bars, moving averages can be very important in cutting through the noise and presenting a clearer picture of volume, by smoothing out daily fluctuations and illustrating larger trends. And just like with moving averages on a typical price chart, you can add moving average lines to a volume bar chart as well. Here's how:

• To begin, click on the "Volume" dropdown, which can be found in the "Attributes" section of the SharpCharts Workbench, located below the chart. From the available options, select "Off".

• From there, scroll down further into the "Indicators" section. From one of the dropdowns on the left side, select the Volume option from the large list of choices (you'll find it near the bottom of the list). This will add a chart of volume bars to your SharpChart.

• Next, on the same line of menus, locate the "Position" dropdown to the right. Click on it, and then select one of the options in the list. Those options are "Above", "Behind Price", "Behind Indicator", and the default "Below". "Above" and "Below" will keep volume bars in a separate set of axes, while "Behind Price" will merge the bars into the price chart and "Behind Indicator" will merge them into another indicator chart (e.g. MACD). If you're intending to add additional features like a moving average line to your volume bars, keeping them separate from other charts may be recommended to avoid clutter.

• Lastly, you'll want to click on the rightmost dropdown, for "Overlay", and select a moving average option from the list. You can choose from either a Simple moving average or an Exponential moving average. Once you've made your selection, a text box will appear to the right, where you can enter the parameter (i.e. number of days, such as 20-day or 50-day) you want to use.

See these instructions visually in this step-by-step demo. Click on the blue button below to begin.