Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

VWAP Explained in Simple Terms

18 sec read


 
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.

httpv://www.youtube.com/watch?v=4B3JNvK1X8Y

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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2 Replies to “VWAP Explained in Simple Terms”

  1. 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. 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.

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