Volume-Filtered MACD for High-Activity Price Moves

Summary

This indicator adapts MACD by filtering price observations according to trading volume. It updates an analysis buffer only when current tick volume exceeds its average, then calculates the moving averages from the retained data. The intended idea is to give more weight to active periods and reduce the influence of price changes in thin or quiet markets.

The document describes adjustable volume and MACD periods, a configurable buffer size, and a custom EMA calculated over the filtered window. It claims the resulting lines may show clearer trends and crossovers, but supplies no backtest, comparison, or measured evidence for that claim. The description also leaves implementation details unclear, including how the filtered observations map to candles and how the method behaves across instruments with different volume conventions. The indicator is therefore a proposed signal filter, not evidence that its signals are more reliable or profitable.

Key ideas

• The indicator updates its analysis buffer only when tick volume exceeds its moving average.
• It calculates MACD moving averages from the retained price observations.
• Volume period, buffer size, and standard MACD periods are configurable.
• The document offers no empirical results to establish that filtering improves signal quality.

Tags

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