VWAP Explained in Simple Terms

As per Wikipedia volume-weighted average price (VWAP) is the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price a stock traded at over the trading horizon. But to understand VWAP in a simple manner here is a video from marketvision which explains VWAP in plain english which brings more visibility on the hidden facts of VWAP.

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2 Replies to “VWAP Explained in Simple Terms”

1. Bhaveek says:

Hi Rajandran, nice to see your blog on stock market, even I am blogging on same topic. Let us both share our knowledge on technical analysis. Even I have written an article on vwap for nifty future.

2. SivaPrakash says:

Hi, Raj,

I’ve tried to calculate Vwap of 2 days,

in the foll code wts the changes to be made

Bars_so_far_today = 1 + BarsSince( Day() != Ref(Day(), -1));
StartBar = ValueWhen(TimeNum() == 093000, BarIndex());
TodayVolume = Sum(V,Bars_so_far_today);
IIf (BarIndex() >= StartBar, VWAP = Sum (C * V, Bars_so_far_today ) /
TodayVolume,0);
Plot (VWAP,”VWAP”,colorOrange, styleThick);

I’ve tried to multiply Day()*2, but is shows error.

help me out here.