vwap: a complete guide a thread 🧵
Luckshury@Luckshuryy
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Apr 23, 2025
~1 min read
1
vwap: a complete guide
a thread 🧵
a thread 🧵
2
what is vwap:
(volume weighted average price)
most commonly calculated through averaging the high, low & close.
helps determine who is in control, buyers or sellers.
price above vwap = buyers in control
price below vwap = sellers in control
vwap = fair value
example ↓
(volume weighted average price)
most commonly calculated through averaging the high, low & close.
helps determine who is in control, buyers or sellers.
price above vwap = buyers in control
price below vwap = sellers in control
vwap = fair value
example ↓
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time-based vwap:
the most common vwap is time-based resetting at the daily open of each day.
I find time-based vwaps to be most useful after some time has been spent away from the vwap before reverting back towards it for a reaction.
note - weekly/monthly vwaps can also be used in the exact same manner just through higher timeframes.
example ↓
the most common vwap is time-based resetting at the daily open of each day.
I find time-based vwaps to be most useful after some time has been spent away from the vwap before reverting back towards it for a reaction.
note - weekly/monthly vwaps can also be used in the exact same manner just through higher timeframes.
example ↓
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anchored vwap:
manually anchored to a fixed point by the user.
I anchor at the beginning of a new trend/pivot area.
price can find continuation from this anchored vwap, but if the anchored vwap is lost in an uptrend then it would indicate weakness in that trend.
example ↓
manually anchored to a fixed point by the user.
I anchor at the beginning of a new trend/pivot area.
price can find continuation from this anchored vwap, but if the anchored vwap is lost in an uptrend then it would indicate weakness in that trend.
example ↓
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vwap close:
where the previous vwap has ended creates a vwap close.
previous day vwap close can offer as a high revisitation level the following day.
knowing this, I use pd vwap as target for mean reversion trades.
*also applies to previous week/month vwap.
example ↓
where the previous vwap has ended creates a vwap close.
previous day vwap close can offer as a high revisitation level the following day.
knowing this, I use pd vwap as target for mean reversion trades.
*also applies to previous week/month vwap.
example ↓
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vwap trade setup:
1 - price spends time away from vwap
2 - new longs buy into vwap
3 - new longs become offside (short here)
4 - trend continuation
example ↓
1 - price spends time away from vwap
2 - new longs buy into vwap
3 - new longs become offside (short here)
4 - trend continuation
example ↓
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settings:
all vwaps can be accessed through tradingview.
my settings ↓
all vwaps can be accessed through tradingview.
my settings ↓
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hope you found this useful. be sure to follow for more information like this.
let me know below what you would like to see next.
let me know below what you would like to see next.