Institutional buyers
including
mutual
fundsuse VWAP to help move into or out of stocks with as small
of a market impact as possible. Therefore, when they can,
institutions will try to buy below the VWAP, or sell above it. This
way their actions push the price back toward the average, instead
of away from it.
Which means that when price is stretched from VWAP, the
likelihood of a reversion to mean (in this case VWAP) is higher
than not - can be useful for timing entry/exits intraday.
Intra-day, bears repeating.
it is a common indicator that you can add to your charts on
whatever platform you use. Tradingview will only show it on
intraday time frames.
It is VWAP - worth
Matt / Steve... Is there anything in the educational section ...
Posted by Orangeman on 11th of May 2022 at 08:22 am
It is VWAP - worth a quick study to begin to understand. https://www.investopedia.com/terms/v/vwap.asp
I often reflect on this bit:
Institutional buyers including mutual fundsuse VWAP to help move into or out of stocks with as small of a market impact as possible. Therefore, when they can, institutions will try to buy below the VWAP, or sell above it. This way their actions push the price back toward the average, instead of away from it.
Which means that when price is stretched from VWAP, the likelihood of a reversion to mean (in this case VWAP) is higher than not - can be useful for timing entry/exits intraday. Intra-day, bears repeating.
it is a common indicator that you can add to your charts on whatever platform you use. Tradingview will only show it on intraday time frames.
Thanks
Posted by flredsox on 11th of May 2022 at 08:46 am
Thanks