TA Challenge: Get to know Volume-Weighted Average Price (VWAP) in one chart
Hi, mooers! Welcome back to the 12th session of the Technical Analysis Challenge! ![]()
Today, we'd like to introduce a new indicator called Volume-Weighted Average Price (VWAP), which measures the average asset price weighted by the total trading volume. Traders and chartists favor it in intraday trading. Even institutions and fund managers use VWAP to gauge the quality of their order fills. You don't want to miss it in your trading toolbox!
First, we've created a chart to give you a snapshot of VWAP. ![]()
Have you added VWAP to your chart? Here is how you can find it on moomoo!
Rewards:
1. $5 USD Stock Cash Coupon
For the six writers of the most informative posts in the discussion, e.g., how to build strategies with VWAP, how to combine VWAP with other indicators, and the limitations of VWAP.![]()
For the six writers of the most informative posts in the discussion, e.g., how to build strategies with VWAP, how to combine VWAP with other indicators, and the limitations of VWAP.
2. 88 Points
· For all mooers who share analytical charts with VWAP in the discussion.
· For all mooers who scored at least three correct answers in the upcoming quiz session. (Mooers will receive a quiz push later!)
· For all mooers who share analytical charts with VWAP in the discussion.
· For all mooers who scored at least three correct answers in the upcoming quiz session. (Mooers will receive a quiz push later!)
Event time: Now – April 6, 08:59 AM EDT/08:59 PM SGT/11:59 PM AEDT
Review the previous TA topics:
MA: How do you identify trends with moving averages?
BB: Breakout? Reversals? How to use Bollinger Bands?
RSI: How does RSI tell whether a stock is overbought or oversold?
KDJ: A short-term trading tool you can't miss
PSY: Emotional trading is bad? PSY doesn't think so!
SAR: How to use the SAR to spot reversal signals?
BIAS: A day trading tool for the rebound
OBV: Forecast market moves & spot reversals
Support levels: Chart to find breakdown stocks
TA Challenge Special: Can you solve the trading clues?
TDS 9: How to identify the turning point with TDS 9?
MA: How do you identify trends with moving averages?
BB: Breakout? Reversals? How to use Bollinger Bands?
RSI: How does RSI tell whether a stock is overbought or oversold?
KDJ: A short-term trading tool you can't miss
PSY: Emotional trading is bad? PSY doesn't think so!
SAR: How to use the SAR to spot reversal signals?
BIAS: A day trading tool for the rebound
OBV: Forecast market moves & spot reversals
Support levels: Chart to find breakdown stocks
TA Challenge Special: Can you solve the trading clues?
TDS 9: How to identify the turning point with TDS 9?
Disclaimer:
This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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伴我几度 : This post has my ADHD brain interested. So thinking about VWAP, what if you were to run VWAP on $PCSP as your guide to trade SPY.
Marcus El Henson : new to all this
Zaith : VWAP is a very good tool to gauge!
bullrider_21 : Hi @Meta Moo. Hasn't the deadline been extended to Apr 6 already? But it's still showing Mar 30 above.
Meta MooOP bullrider_21: Hi @bullrider_21, sorry for the confusion. We have corrected the deadline to April 6. Thanks for pointing out!
bullrider_21 Meta MooOP: np @Meta Moo
careful Hamster_0859 : VWAP (Volume Weighted Average Price) is a common trading indicator used to measure the average transaction price of a stock or other security while considering the impact of trading volume. Here are some suggestions on how to use VWAP to develop a strategy and how to combine it with other metrics:
VWAP as a trend indicator: You can use VWAP as a trend indicator to determine if the price trend is moving in the direction you expect. If the stock price is higher than VWAP, it may mean that the stock price is rising; conversely, if the price is lower than VWAP, it may mean that the stock price is falling.
VWAP as a support and resistance level: VWAP can also be used as a support and resistance level. If the stock price falls below VWAP, VWAP may act as a support level; conversely, if the stock price is higher than VWAP, VWAP may act as a resistance level.
Combine VWAP with other indicators: VWAP can be used in combination with other technical indicators, such as moving averages, relative strength index, MACD, etc. These metrics can provide you with more information to help you make better trading decisions.
VWAP's calculation can only reflect past prices and trading volumes, and cannot predict the future. Also, when trading volumes are low, VWAP's reliability decreases, as the price may be affected by a single big deal.
Therefore, when using VWAP, you need to be aware of its limitations and use it in combination with other metrics.
PenNea924 : VWAP was the first indicator I used and it was very helpful getting me to start learning about resistance and when to exit a stock. Very helpful tool indeed
富贵健康 : Vwap needs to be used in conjunction with other indicators. In this way, the veal indicator can be better used to make decisions about trading stocks
stylax : interesting to learn.
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