Volume Weighted Close Node
Rolling Volume-Weighted Modified Close Price
Overview
The Volume Weighted Close Node computes a rolling volume-weighted average of a modified close price. The modified close gives double weight to the closing price relative to the high and low: TP = (close×2 + high + low) / 4. This weighted close is then combined with volume over the look-back period to produce a VWMA of the modified close.
The result is a smooth price level that emphasizes bars with high volume and gives extra weight to the closing price (reflecting its importance as a sentiment reference). It outputs values in price units and can be used as a dynamic support/resistance level, as an alternative to VWAP for multi-bar windows, or as a volume-aware moving average.
Algorithm
Parameters
| Parameter | Default | Description |
|---|---|---|
| period | 14 | Rolling window for the volume-weighted modified close average |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | OHLCV | Standard OHLCV price and volume data |
| values | Output | (number | null)[] | Volume-weighted modified close (price units) |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Dynamic Support/Resistance
Plot VWC on the price chart as a dynamic level. Price tends to find support at VWC during uptrends (high-volume bars pull VWC toward recent close prices) and resistance during downtrends. Bounces off the VWC line can serve as entry signals in trend-following strategies.
Volume-Weighted Moving Average
Use VWC as a substitute for a standard SMA when you want volume-weighted smoothing. Unlike VWAP (which resets each session), VWC provides a continuous rolling window average that can be used across any timeframe without session boundaries affecting the calculation.
Close-Price Emphasis for Sentiment
By double-weighting the close in the modified TP formula, VWC tracks the closing-price sentiment more closely than standard VWMA (which uses a simple average TP). This makes VWC more responsive to end-of-session positioning — particularly relevant for daily charts where the closing price reflects the day's final balance of buyers and sellers.
Tips & Best Practices
VWC vs VWAP vs VWMA
VWAP resets daily and uses a simple TP = (H+L+C)/3. VWMA is a rolling VWAP with the same TP formula. VWC uses a modified TP = (2C+H+L)/4, giving 50% weight to the close vs 33% in VWAP/VWMA. Choose VWC when you want more emphasis on the closing price; choose VWMA for closer VWAP equivalence.
Combine with Volume Analysis
VWC moves quickly toward price when volume is high (heavy trading) and moves slowly when volume is low (thin trading). This means VWC naturally reflects the "price of record" for the market's most active trading periods. Watch for VWC slope acceleration — it often coincides with the start of institutional accumulation or distribution.
Zero Volume Handling
If total volume over the window is zero, VWC returns null to avoid division by zero. This can happen in extremely illiquid instruments or during trading halts. Ensure your data source is filtered for normal trading sessions, or add a volume-greater-than-zero filter before VWC in your node graph.