VMACD (Volume MACD)

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 reflects the trend of market volume changes by calculating the difference (DIF) between the fast and slow moving averages of volume and the signal line (DEA). When DIF crosses above DEA, it indicates an upward volume trend; when DIF crosses below DEA, it indicates a downward volume trend.

Application Scenarios

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

Usage Suggestions

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