VWAP Indicator -- Short-Fried Must-Watch Analytical Indicator

What is VWAP Indicator

VWAP (Trading Volume Weighted Average Price): This is an enhanced version of the moving average MA, because the average line is just an average of the past price, calculated on a daily basis, and VWAP calculates the trading volume together.

Specifically, Futubull applied this indicator to the Trunp Media Technology Group, which has become the top performer in the market so far, with the chip an inch higher.

VWAP Indicator Algorithm

VWAP: Trade Volume Weighted Average Price, a weighted average price is obtained by multiplying the transaction volume by the price and then dividing by the total volume.

VWAP Basic Formula

VWAP = σ (Typical Price* Transaction Volume) /σ Trade Volume where, Typical Price = (Highest Price+Low+Close Price) /3

VWAP is very useful as an intraday trading indicator as it helps us to determine current market trends and find the best time to buy and sell.

VWAP Benefits

1. VWAP Advantage: A comprehensive consideration of price and transaction volume factors avoids the misdirection of simple price volatility.

2. Same as the average line: VWAP can be used as an indicator to measure the average price of the market, used to determine the trend and direction of the market. In addition, it is possible to determine the level of support and resistance.

3. Unlike a straight line: VWAP as a dynamic indicator, it changes with the volume and price of each time period. Instead of calculating prices for fixed periods that refer to a flat line. Due to the increased trading volume, VWAP is better able to reflect the true price of the market, avoiding making wrong trading decisions when trading volume is low.

VWAP Trading Strategy

1. Trend Determination Basis: When the price is above the VWAP, it indicates that the market is in an uptrend; when the price is below the VWAP, it indicates that the market is in a downtrend. Therefore, you can choose to buy or sell depending on the trend direction.

2. As a level of support and resistance: When the price moves up from below the VWAP, it indicates buying power in the market, you can consider buying; when the price moves from the top down from the VWAP, it indicates a sell force in the market and you can consider selling.

3. Other indicators to use in combination: For example, you can use VWAP and indicators such as MACD, KDJ to find the trading strategy that works best for you.

VWAP Case Analysis

• @波段投机者 ---- Intraday Trading Learning Memo

• @也饭团 ----How to determine if a stock has an upward momentum?

• @Leo X Ken Trader—— How can I use VWAP to help me trade intraday?

How to use VWAP

PC-side VWAP User Guide

1. Click on 1 line and click Set

2. Click Metrics Management to find VWAP in the main image

3. When you click on VWAP, it will be shown in the figure

Mobile VWAP Guidelines

1. Click 1 minute to select Settings

2. Click on the indicator

3. Click [Add/Setup]

4. Enter [VWAP] in the search box to find

5. Return to find VWAP in indicator