# Volume-weighted MACD Volume-weighted MACD is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Rebuilds MACD on volume-weighted averages: a 12-period fast VWMA minus a 26-period slow VWMA with a 9-period signal line, so heavily traded bars drive the momentum read while quiet drift barely moves it. An optional classic price-only MACD overlay exposes where participation disagrees with price, alongside a histogram shaded by momentum expansion. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 15, 2026. - Access: free. - Concepts: [Volume-weighted MACD](https://www.luxalgo.com/library/concept/volume-weighted-macd/) (primary) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=pss812jdtqpw783x5qot9ce5 - Page: https://www.luxalgo.com/library/indicator/volume-weighted-macd/ **Volume-weighted MACD** rebuilds the familiar momentum engine with participation deciding each bar's weight. Following the [Volume-weighted MACD](https://www.luxalgo.com/library/concept/volume-weighted-macd/) construction, it subtracts a 26-period slow VWMA from a 12-period fast VWMA, smoothing the spread with a 9-period signal line. Every close is multiplied by its volume before averaging, so busy bars drag the lines hard while thin drift barely registers. The optional price-only MACD overlay runs on the same source and lengths, making the disagreement between the two lines directly readable. ## How to Trade the Volume-weighted MACD? - **Signal-line crosses**: volume-weighted momentum turning up or down, the standard crossover grammar with participation built in. - **Zero-line crosses**: the fast VWMA moving above or below the slow, the regime boundary. - **Histogram shading**: bright columns mark expanding momentum, faded columns a histogram already contracting toward its signal line. - **VW-MACD versus the classic line**: the weighted line outrunning its price-only twin says volume sits behind the move; a weaker line warns participation is thinning as price advances. Six alerts cover both signal crosses, both zero crosses, and both histogram turns. It sits naturally in the [momentum toolkit](https://www.luxalgo.com/library/family/momentum/) wherever the price-only version would. ## Volume-weighted MACD Settings - **Source** (default close): the series fed into both volume-weighted averages. - **Fast VWMA Length** (default 12) and **Slow VWMA Length** (default 26): the familiar spans carried over from the classic formulation. - **Signal Smoothing** (default 9, EMA): signal-line length, with an SMA option for the smoothing type. - **Classic MACD Comparison** (default enabled): overlays the price-only line for the participation read. - Style toggles cover **Show Histogram** (default enabled), **Gradient Fill** (default enabled), and the directional colors. ## Frequently Asked Questions ### When does this diverge from the classic MACD? The [MACD](https://www.luxalgo.com/library/indicator/macd/) weighs every bar equally, so the two agree whenever volume is uniform. They separate when volume concentrates on one side of the move: heavy trade behind a rally pulls the weighted line ahead, a thin climb leaves it trailing. That separation is the distinctive read. ### What happens on symbols without volume data? When a window reports no volume at all, every bar carries equal weight and the average falls back to a simple mean, so the line stays defined instead of breaking. ### Should the signal line be an EMA or SMA? The 9-period EMA is the most common choice and the default. An SMA weighs the window evenly, which slows the crossover slightly; it is a preference call, not a different indicator. ## Related indicators - [Adaptive MACD](https://www.luxalgo.com/library/indicator/adaptive-macd/) (MACD): markdown at https://www.luxalgo.com/library/indicator/adaptive-macd.md - [MACD Based Price Forecasting](https://www.luxalgo.com/library/indicator/macd-based-price-forecasting/) (MACD): markdown at https://www.luxalgo.com/library/indicator/macd-based-price-forecasting.md - [Impulse MACD](https://www.luxalgo.com/library/indicator/impulse-macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/impulse-macd.md - [MACD-V](https://www.luxalgo.com/library/indicator/macd-v/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/macd-v.md - [Schaff Trend Cycle](https://www.luxalgo.com/library/indicator/schaff-trend-cycle/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/schaff-trend-cycle.md - [Zero-lag MACD](https://www.luxalgo.com/library/indicator/zero-lag-macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/zero-lag-macd.md - [MACD](https://www.luxalgo.com/library/indicator/macd/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/macd.md - [OsMA](https://www.luxalgo.com/library/indicator/osma/) (Momentum & Oscillators): markdown at https://www.luxalgo.com/library/indicator/osma.md --- Source: https://www.luxalgo.com/library/indicator/volume-weighted-macd/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/