This is an experimental study inspired by the volume weighted moving average convergence divergence (VWMACD) concept. In this formula, divergences between two volume weighted moving averages and two simple moving averages over their respective lookback periods are calculated. The difference between the divergences is calculated, then the difference between the result and an exponential moving average of the result are calculated to provide a histogram. Finally, the mean value between the two divergences is calculated to provide the VWAD line.
Thanks a lot bro! Am I right in saying that the histogram indicates the strength of the signal that the VWAD line gives? Sorry I could be completely wrong, but just trying to get my head around it!