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technical_indicators:vwap_intraday [2021/05/17 18:15] betseyp |
technical_indicators:vwap_intraday [2022/06/15 23:45] betseyp [Using with SharpCharts] |
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| ===== Uses for VWAP ===== | ===== Uses for VWAP ===== | ||
| - | VWAP is used to identify liquidity points. As a volume-weighted price measure, VWAP reflects price levels weighted by volume. This can help institutions with large orders. The idea is not to disrupt the market when entering large buy or sell orders. VWAP helps these institutions determine the [[:glossary_l#liquidity|liquid]] and illiquid price points for a specific security over a very short time period. | + | VWAP is used to identify [[:glossary_l#liquidity|liquidity]] points. As a volume-weighted price measure, VWAP reflects price levels weighted by volume. This can help institutions with large orders. The idea is not to disrupt the market when entering large buy or sell orders. VWAP helps these institutions determine the liquid and illiquid price points for a specific security over a very short time period. |
| 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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| {{:technical_indicators:vwap_intraday:vwapp-8-shch.png|VWAP - SharpCharts}} | {{:technical_indicators:vwap_intraday:vwapp-8-shch.png|VWAP - SharpCharts}} | ||
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| + | For more details on the parameters used to configure VWAP overlays, please see our [[https://support.stockcharts.com/doku.php?id=sharpcharts:reference#vwap|SharpCharts Parameter Reference]] in the Support Center. | ||
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