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Range-Weighted MACD Using Range-Weighted Averages

Article MQL5 code base
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Summary

The document presents a MACD variant that replaces exponential moving averages with range-weighted averages. It applies the range-weighted method both to the fast-versus-slow average difference and to the resulting signal line, making the calculation consistent across the indicator’s components. The familiar MACD structure is retained, but the smoothing method changes.

The note says the indicator can be read using standard MACD approaches, including signal-line crossovers; color changes mark those crosses, while the OSMA difference is displayed as a filled area. It provides no formula for the range-weighted average, parameter guidance, market examples, backtest, or comparison against conventional MACD. As a result, it describes the indicator’s construction and display, but does not establish whether the alternative smoothing produces more useful or reliable trading signals.

Key ideas

  • The indicator substitutes range-weighted averages for exponential averages in the MACD calculation.
  • The signal line is also computed with a range-weighted average.
  • It retains familiar MACD crossover interpretation and uses color changes to mark crosses.
  • The OSMA difference is shown as a filled region for readability.
  • The document supplies no performance evidence or detailed range-weighted formula.

Tags

Technical indicatorsMomentum

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.