VWAP pro
- Indicators
- Mikhail Nazarenko
- Version: 1.2
- Activations: 5
VWAP (Value Weighted Average Price) is an indicator of market makers and banks. It is used by professional traders for intraday, weekly and long-term trading. If you are not familiar with it yet, it is high time to figure it out.
How does VWAP work?
VWAP shows the volume-weighted average price over a certain period. Its calculation takes into account both the price change and the volume of transactions in each candle. Candles with a higher volume have a greater impact, which increases the accuracy of the indicator.
Since VWAP is actively used by large funds and banks, trading on this indicator increases the probability of moving in the same direction as them.
How is VWAP calculated?
The indicator is calculated for a certain period (day, week, month). The calculation starts from the first candle of the period and is updated at its end. In essence, VWAP reflects the average price of all traded contracts for the selected time period.
Advantages of VWAP PRO
A regular VWAP depends on the time zone and seasonal time changes. For example, New York (UTC-5) has a daylight saving time shift, while Europe (UTC+2) has its own shift. This leads to a discrepancy in the indicator readings in different zones.
VWAP PRO solves this problem by allowing you to calculate the indicator in any time zone:
- New York time (UTC-5);
- By GMT time (UTC+0);
- According to the trading terminal time, taking into account seasonal changes.
This way your VWAP PRO will always match the readings used on Wall Street.
How to trade?
The main concept of trading on VWAP is the return of the price towards the VWAP line. The price tends to test the VWAP line of the previous day, week or month. The price below the VWAP is trending down, above the VWAP is trending up. Knowing the principle of return to the line, you can develop your trading strategies.
VWAP PRO indicator settings
- - - - - // General settings // - - - - -
Time offset - select the time offset for VWAP calculation (NewYork, GMT, TerminalTime)
Drow on bars (0 - all bars of chart) - draw the indicator only on the specified number of bars
- - - - - // Daily VWAP line // - - - - - enable daily VWAP
Last day VWAP level - show VWAP of the previous day
Day line width - line thickness
Day line color - line color
- - - - - // Weekly VWAP line // - - - - - - enable weekly VWAP
Last week VWAP level - show VWAP of the previous week
Week line width - line thickness
Week line color - line color
- - - - - // Monthly VWAP line // - - - - - enable monthly VWAP
Last month VWAP level - show VWAP of the previous month
Month line width - line thickness
Month line color - line color
- - - - - // Solid VWAP line // - - - - - enable VWAP moving
Period solid VWAP line (bars) - line period
Smoothing (bars) - line smoothing
Solid VWAP line width - line thickness
Solid VWAP line color - line color
Before purchasing, test the indicator in the MT4 tester.
I would be glad to receive your feedback and any feedback on improving the product.
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