Discussing the article: "Price Action Analysis Toolkit Development (Part 44): Building a VWMA Crossover Signal EA in MQL5"

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Check out the new article: Price Action Analysis Toolkit Development (Part 44): Building a VWMA Crossover Signal EA in MQL5.

This article introduces a VWMA crossover signal tool for MetaTrader 5, designed to help traders identify potential bullish and bearish reversals by combining price action with trading volume. The EA generates clear buy and sell signals directly on the chart, features an informative panel, and allows for full user customization, making it a practical addition to your trading strategy.

Successful trading depends on the ability to separate meaningful price trends from background market noise. For decades, moving averages such as the Simple Moving Average (SMA) and Exponential Moving Average (EMA) have helped traders smooth volatility and clarify market direction. Yet, these traditional indicators overlook an essential component of price movement: trading volume, which often determines the true significance of a trend.

The evolution of the Volume-Weighted Moving Average (VWMA) has addressed this limitation by assigning greater importance to prices associated with higher trading activity. As a result, the VWMA delivers a clearer, more reliable indication of genuine market momentum and helps traders differentiate between strong, volume-backed moves and weak, low-participation fluctuations.

This article examines the practical application of VWMA crossovers in algorithmic trading. It will introduce the VWMA approach, explain its implementation in MQL5, present test results, and summarize key takeaways for both discretionary and systematic traders.

Building on these principles, the VWMA Crossover Expert Advisor features a VWMA crossover strategy combined with an intuitive on-chart dashboard. Designed for clarity and ease of use on any chart background, this tool automatically detects crossover events, highlights actionable signals, and delivers timely alerts—streamlining both trade execution and market monitoring.

Author: Christian Benjamin

 
Just tried this, and the signal is not showing 5 days now, for XAUSD, why the signal not showing??
 
Wilson Malinda #:
Just tried this, and the signal is not showing 5 days now, for XAUSD, why the signal not showing??
I don’t get you, do you mean in backtesting or what? This tool was only posted today, so how’s it already 5 days old?
 
Interesting setup. That VWMA crossover looks clean. I like how you’re combining volume with trend confirmation instead of relying just on price movement. Curious to see how it performs on lower timeframes, especially during volatile sessions.
 
Great how you mixed volume-weighted moving averages with price action to catch reversals. The on-chart panel looks super clean and easy to follow. Lots of room to play around with this idea. Thanks for sharing it with everyone.
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