# Volume-Weighted MACD

`D07-F05-A19` · Technical Indicators → Volume Indicators · archetype `series-transform` · difficulty 2/5 · verification **verified**

Full page: https://docs.thefintechbuilder.com/technical-indicators/volume-indicators/volume-weighted-macd/
Agent skill: `npx skills add IslamBaraka90/Fintech-Algorithms-Library` — https://docs.thefintechbuilder.com/guides/agent-skill/

## Install and import

```bash
npm install fintech-algorithms
```

```ts
import { volumeWeightedMacd } from "fintech-algorithms/technical-indicators/volume-indicators/volume-weighted-macd";
```

## Signature

```ts
volumeWeightedMacd(input)
```

Runs the MACD construction on volume-weighted moving averages of close instead of exponential ones, and smooths the resulting line into a signal.

## Parameters

| Name | Type | Required | Notes |
| --- | --- | --- | --- |
| `input` | `TopicInput` | yes | `bars` needs `timestamp`, `close` and `volume`. From `parameters` this topic reads `fast_period` (default 3), `slow_period` (default 10, minimum `fast_period` + 1) and `signal_period` (default 9, an integer of at least 2). |

## Returns

`TopicResult`

`series` holds `value`, the fast VWMA of close minus the slow VWMA, and `signal`, the EMA of `value` over `signal_period`. `latest` carries the last element of each. A window whose volume sums to 0 makes that VWMA null, which propagates. The two warm-ups differ and are described below.

## Warm-up

The first ``slow_period` - 1 bars for `value` (9 with the defaults); a further `signal_period` - 1 for `signal` (index 17)` positions are `null`. `ready_at` is 9, driven by `value`. `signal` is still null there, so a crossover strategy needs the later index.

## Errors

- When `slow_period` is not an integer greater than `fast_period` — throws Error
- When `signal_period` is not an integer of at least 2 — throws Error
- When a bar carries a negative `volume` — throws Error

## Complexity

Time `O(n)`, space `O(n)`.

## Worked example

Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

### Input

`input`:

```json
{
  "bars": [
    {
      "timestamp": "2024-01-02",
      "basis": "synthetic-unadjusted",
      "open": 100,
      "high": 101.45,
      "low": 98.695,
      "close": 100,
      "volume": 750000,
      "benchmark": 200
    },
    {
      "timestamp": "2024-01-03",
      "basis": "synthetic-unadjusted",
      "open": 101.49111452,
      "high": 103.38381693,
      "low": 100.05480022,
      "close": 101.78791214,
      "volume": 795117,
      "benchmark": 200.56326135
    },
    {
      "timestamp": "2024-01-04",
      "basis": "synthetic-unadjusted",
      "open": 102.45519048,
      "high": 104.6701838,
      "low": 100.91147007,
      "close": 102.9549389,
      "volume": 840234,
      "benchmark": 201.11020913
    }
  ],
  "parameters": {}
}
```

### Call

```ts
volumeWeightedMacd(input)
```

### Returns

object with 9 fields: topic_id, title, state, ready, ready_at, series, latest, parameters, …

```json
{
  "topic_id": "D07-F05-A19",
  "title": "Volume-Weighted MACD",
  "state": "calculated",
  "ready": true,
  "ready_at": 9,
  "series": {
    "value": [null, null, null, null, null, null],
    "signal": [null, null, null, null, null, null]
  },
  "latest": {
    "value": -2.799155032079767,
    "signal": -1.3105571933842994
  },
  "parameters": {},
  "diagnostics": {
    "causal": true,
    "input_count": 96
  }
}
```

## Verification and provenance

Tier: **verified** (via E).

The worked example below is the figure published in this algorithm's article, replayed and asserted by the test suite on every build. The arithmetic cannot drift without the build failing.

Both tiers guarantee the signature. Full explanation: https://docs.thefintechbuilder.com/guides/verification/

Generated from the docs.json payload shipped inside fintech-algorithms@0.13.0.
The signature and parameter list are checked against the compiled implementation at build time,
so a description that contradicts the code fails the build rather than reaching this file.

## Links

- Article (how it works, step by step): https://thefintechbuilder.com/technical-indicators/volume-indicators/volume-weighted-macd/
- Implementation source: https://github.com/IslamBaraka90/Fintech-Algorithms-Library/blob/main/src/technical-indicators/volume-indicators/volume-weighted-macd/impl.ts
- Package on npm: https://www.npmjs.com/package/fintech-algorithms
- Domain index for agents: https://docs.thefintechbuilder.com/technical-indicators/llms.txt