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technical_indicators:vwap_intraday [2019/06/24 19:39] 127.0.0.1 external edit |
technical_indicators:vwap_intraday [2020/09/22 00:40] betseyp [Conclusion] |
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| VWAP can also be used to measure trading efficiency. After buying or selling a security, institutions or individuals can compare their price to VWAP values. A buy order executed below the VWAP value would be considered a good fill because the security was bought at a below average price. Conversely, a sell order executed above the VWAP would be deemed a good fill because it was sold at an above average price. | VWAP can also be used to measure trading efficiency. After buying or selling a security, institutions or individuals can compare their price to VWAP values. A buy order executed below the VWAP value would be considered a good fill because the security was bought at a below average price. Conversely, a sell order executed above the VWAP would be deemed a good fill because it was sold at an above average price. | ||
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| + | ===== Anchored VWAP ===== | ||
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| + | While traditional VWAP starts at the first bar of the day and ends at the last bar of the day, Anchored VWAP allows the chartist to choose their own starting bar. The overlay is typically started at a significant high or low, earnings announcement, or some other indicator of a change in market psychology. This way, VWAP is calculated using only price action since the significant event occurred. | ||
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| + | {{:technical_indicators:anchored_vwap:avwapexample.png}} | ||
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| + | Because the starting bar is chosen by the chartist, and the ending bar is the most recent bar available, Anchored VWAP can span multiple days. Since this version of the overlay is not confined to a single trading day, Anchored VWAP can be used on daily charts as well as intraday charts. | ||
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| + | **Learn More:** [[:technical_indicators:anchored_vwap|Anchored VWAP]] | ||
| ===== Conclusion ===== | ===== Conclusion ===== | ||