[EquisMetaStock Group] Re: Volume Weighted MACD

[pumrysh <no_reply@xxxxxxxxxxxxxxx>]

Kev,

Here's the TASC site for Buff's original volume weighted moving average work in February 2001:

http://www.traders.com/Documentation/FEEDbk_docs/2001/02/TradersTips/TradersTips.html#metastock

The Buff averages, as described by Buff Dormeier in his article "Buff Up Your Moving Averages" in this issue, can easily be recreated in MetaStock 6.52 or higher. To recreate the indicator in MetaStock, select Indicator Builder from the Tools menu and click New. The formula can be written one of two ways: 
  
1. X:=Input("Time Periods",1,500,25); 
    Sum(V*C,X)/Sum(V,X) 
2. X:=Input("Time Periods",1,500,25); 
    Sum(V*C,X)/(Cum(V)-Ref(Cum(V),-X))


I also noted that in October of 2009 TASC did another article on a volume weighted moving average by David Hawkins. Here's the address and the indicator:

HTTP://WWW.TRADERS.COM/DOCUMENTATION/FEEDBK_DOCS/2009/10/TRADERSTIPS.HTML#TT20

METASTOCK: VOLUME-WEIGHTED MACD HISTOGRAM 
(HAWKINS ARTICLE CODE)

Here is the MetaStock code to implement the volume-weighted MACD histogram from David Hawkins' article in this issue, "Volume-Weighted MACD Histogram."

PeriodS:=Input("Enter short period",1,500,12);
PeriodL:=Input("Enter long period",2,501,26);
PeriodSig:=Input("Enter smoothing period",1,200,9);
LongMA:=(PeriodL*Mov(V*C,PeriodL,E))/
(PeriodL*Mov(V,PeriodL,E));
ShortMA:=(PeriodS*Mov(V*C,PeriodS,E))/
(PeriodS*Mov(V,PeriodS,E));
VMACD:=(ShortMA-LongMA);
SignalLine:=Mov(VMACD,PeriodSig,E);
VMACD-SignalLine
?David Hawkins


To answer your question of whether your formula seems correct using Buff's moving average...yes it does.

Thanks for sharing,

Preston





--- In equismetastock@xxxxxxxxxxxxxxx, "formulaprimer" <formulaprimer@xxx> wrote:
>
> Buff Dormeier Volume weighted MACD that was discussed in a past issue of TASC and Bollinger raving about it... I noticed that a lot of the indicators don't mirror what is in the articles... Researching this I found out that MS does its calculations for is volume adjusted and weighted averages differently... 
> 
> Preston seems to be have solved this problem so I with his adjustment I have made this VWMACD... Does this seem correct?
> 
> {Volume Weighted MACD - Buff Dormeier}
> p1:= Input("Short Term Periods", 3,100,12);
> p2:= Input("Long Term Periods", 5,200,26);
> 
> VWMACD:=(Sum(C*V,p1)/Sum(V,p1)) - (Sum(C*V,p2)/Sum(V,p2));
> 
> VWMACD;
> Mov(VWMACD, 9, E);
> 
> VWMACD - Mov(VWMACD, 9, E);
> 
> {End}
>




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