Volume Weighted MACD (Bollinger style)

This indicator implements a Volume-Weighted MACD inspired by John Bollinger’s approach.
Instead of using standard exponential moving averages, the MACD line is calculated with volume-weighted EMAs, giving more importance to price movements that occur with higher volume. The signal line remains a regular EMA of the VWMACD, preserving the classic MACD structure while adding volume confirmation.

How it works

Fast VWEMA = EMA(price × volume) / EMA(volume)

Slow VWEMA = EMA(price × volume) / EMA(volume)

VWMACD = Fast VWEMA − Slow VWEMA

Signal Line = Standard EMA of the VWMACD

Histogram = Difference between VWMACD and Signal

Purpose
The indicator helps answer a key question: Does volume support the trend?
If price moves are accompanied by strong volume, the VWMACD will reinforce the signal. If volume fades, underlying weakness becomes more visible.

Typical Use

Crossovers for timing entries and exits

Divergences to spot potential reversals

Histogram expansion/contraction to gauge momentum strength

This tool blends trend and momentum analysis with built-in volume weighting to reduce false signals caused by low-participation price moves.