VWAP - Quaderr https://quaderr.com/vwap/ -

VWAP stands for Volume Weighted Average Price.

Learn how VWAP works

VWAP is a very handy Ninjatrader Indicator for day traders as it gives you a lot of information on the current day’s trend, variance, support and resistance.

It starts calculating the average at the start of the trading day and end at the close of the market. Furthermore it also calculates the deviations from this average. Very much like a Bollinger Band calculates on average with deviations around this average.

The deviation bands along with the average also provides day traders with accurate support and resistance levels. When the market moves above or below the two deviation levels it generally signals strong breakouts. When the market are within these levels it suggests a range bound market.

Daily trend changes can also be seen when the VWAP curve changes color from red to blue and vice versa.

How to Trade VWAP?

Entries

Long and short entries are given when the trend changes or the market bounces of a deviation range or the market bounces of the VWAP average curve.

Exits

Depending on where you entered the trade you can set your stoploss at the deviation band below (for long) or above (for short) your entry level.

Profit targets can be set at the deviation band above or below your entry level.

Bar Color Changes

This Indicator also changes the color of the bar outline depending on what deviation band the market is trading in. This helps you to visualize when the market is range bound, breaking out or changing trend.

VWAP - Settings

You can adjust the size of each deviation band in settings. For the first band values between 0.5 – 2 are generally adequate. For the second band values between 1 – 3 should be adequate.

Our VWAP Indicator really detects major trend changes accurately with absolute minimal whipsaw. The deviation bands are also very accurate in detecting support and resistance levels.

VWAP – Summary

Our VWAP indicator shows you accurate trend changes with minimal whipsaw

The VWAP curve along with our deviation bands gives you accurate support and resistance levels

This Indicator also detects major break-outs accurately. Giving accurate info on trend, variance, support and resistance.