Indicator Description

VMACD (Volume MACD) is a trend indicator based on volume, reflecting the trend of market volume changes by calculating the difference between the fast and slow moving averages of volume.

Function Information

• Function Name: VMACD
• Input Parameters: Volume
• Parameter Settings: short (default: 13), long (default: 21), timeperiod (default: 13)
• Output: dif, dea, vmacd

Calculation Principle

VMACD is calculated using the following formula:

DIF = EMA(Volume, short) - EMA(Volume, long)
DEA = EMA(DIF, timeperiod)
VMACD = DIF - DEA

Where EMA is the Exponential Moving Average.

Usage Scenarios

1. Volume trend analysis
2. Market activity judgment
3. Price trend confirmation
4. Trading signal generation

Usage Recommendations

1. DIF crossing above DEA can be seen as a buy signal
2. DIF crossing below DEA can be seen as a sell signal
3. Use in combination with price MACD
4. Pay attention to volume coordination