TY all. I'm going to see if there is any easy way to get
this to show up on my daily charts. It seems we hear time and
time again how price gets rejected at the VWAP so good to know
where that is. Even now for example on the SnP.
useless on daily charts - will look like a very fast MA length
like a 1 length. Use for intra day 1 min, 5 min, 10 min charts. In
fact most charting services probably won't even display it on a
daily chart
remember what VWAP is for: Large institution's, let's say one of
them wants to sell or buy 10 million shares of MSFT or something
else, they don't just do a market order- they will give it to their
cleaning house who will scale into or out of the position during
the day. Most firms will guarantee at least VWAP or better average
fills. If they are trying to buy, the firm will try and scale
orders at VWAP or hopefully below VWAP price and not above it.
That's mainly what it's intended for - firms to scale in and out of
large positions. Day traders use it on short term charts for
overall t rend during the day - knowing that large buyers and
sellers target that price
again know what it is used for and it will make more sense for
you
VWAP - Can someone please
Posted by fredsaid on 2nd of Mar 2022 at 09:22 am
VWAP - Can someone please explain the VWAP ?
Volume Weighted Average Price
Posted by steve on 2nd of Mar 2022 at 09:26 am
Volume Weighted Average Price
TY all. I'm going to
Posted by fredsaid on 2nd of Mar 2022 at 09:48 am
TY all. I'm going to see if there is any easy way to get this to show up on my daily charts. It seems we hear time and time again how price gets rejected at the VWAP so good to know where that is. Even now for example on the SnP.
useless on daily charts -
Posted by matt on 2nd of Mar 2022 at 09:55 am
useless on daily charts - will look like a very fast MA length like a 1 length. Use for intra day 1 min, 5 min, 10 min charts. In fact most charting services probably won't even display it on a daily chart
remember what VWAP is for:
Posted by matt on 2nd of Mar 2022 at 09:58 am
remember what VWAP is for: Large institution's, let's say one of them wants to sell or buy 10 million shares of MSFT or something else, they don't just do a market order- they will give it to their cleaning house who will scale into or out of the position during the day. Most firms will guarantee at least VWAP or better average fills. If they are trying to buy, the firm will try and scale orders at VWAP or hopefully below VWAP price and not above it. That's mainly what it's intended for - firms to scale in and out of large positions. Day traders use it on short term charts for overall t rend during the day - knowing that large buyers and sellers target that price
again know what it is used for and it will make more sense for you
5 min view of SPX
Posted by matt on 2nd of Mar 2022 at 10:12 am
5 min view of SPX and IWM - price trading around those cycles. VWAP is in yellow on the SPX 5 min
aha ... thank you
Posted by fredsaid on 2nd of Mar 2022 at 10:21 am
aha ... thank you
https://www.investopedia.com/terms/v/vwap.asp
Posted by mitchell on 2nd of Mar 2022 at 09:24 am
https://www.investopedia.com/terms/v/vwap.asp