Despite being mischaracterized by many traders as a one-dimensional indicator with limited functionality, VWAP offers immense value when used correctly. This guide explores the untapped potential of volume weighted average price that often goes unseen by discussing concepts like standard deviation bands, longer term VWAPs, slope, and more.
By diving deeper into VWAP than any other free resource, this guide dispels the common misconceptions and illuminates the significant role it plays in dictating market behavior. The Roadmap serves as a precursor to our on-demand video course, which extensively explores every concept discussed and more.
The code was originally written on ThinkOrSwim and is natively designed for this platform. Every indicator mentioned in the gallery below is available and accessible on ToS. Please note that the platform is free, and you do not need a funded account to access their real-time charting data.
For traders unable to use ThinkOrSwim due to country restrictions, we’ve been able to replicate some of the code on TradingView’s free charting software. VWAP Intraday, DateVWAP, and a limited version of VWAP Aspect are available. The strategy can still be successfully traded using this platform, but some of the features shown in the gallery below will be inaccessible.
VWAP On-Demand provides a comprehensive look at both volume-weighted average price and our unique strategy built around it. The package includes:
Condensing over a decade of market insight from TheVWAP’s founder, Zach Hurwitz, our streamlined curriculum will enhance your understanding of VWAP and the dramatic impact it can have on your trading.
This VWAP initiated on 12/24/18 allows us to track the cumulative average price of SPY from a significant swing low, which served as crucial support on 6/3/19 in the midst of a deep pullback.
The addition of deviation bands can help provide additional context as we move farther away from the average, but these can also be removed in the study settings if you’d prefer to simplify.
Barring holidays or other extenuating circumstances, sessions will be held on Mondays and Thursdays at 4:30pm ET for four consecutive weeks. You’ll receive an email prior to your selected starting date that outlines the projected schedule for that particular month.
All sessions will be recorded and posted to a private gallery, and you’ll have the opportunity to submit questions in advance of Q&A sessions if you can’t attend.
Highlighted at the the bottom of the chart, Aspect showcases the shifting price action on BIDU and continually gauges its intensity. When used in conjunction with intraday signals it can bolster our conviction on most setups.
VWAP Intraday is the backbone of our strategy, revealing areas of support and resistance on charts like MA that would otherwise remain hidden.
The dotted lines represent the +1 and -1 deviation bands, and the solid lines bordering them are customizable tolerance bands that can be either removed or widened to align with your preferred style.
Located in the upper left corner, Dashboard allows us to quickly assess a chart’s volatility and its position relative to VWAP.
Each metric can be hidden if you’d prefer, and the position size calculator is customizable to fit your particular parameters of risk and reward.
This daily chart of ROKU shows Event VWAPs anchored to its last four earnings announcements. Collectively, they served as key areas of both support and resistance even months after their initiation.
Color, width, and style are all completely customizable.
On this 20 day, 5 minute chart of NFLX, note the blue visual highlighting when current volume is ahead of volume ‘pace’ (white line), with red highlighting applied to areas below average volume at any given time.