Update on 8 July
VWAP is now available on MAC version. Follow 'Management→Select option “VWAP” in Trend' to add it, same as the PC version.
Good morning guys, to provide you with better experiences when trading with moomoo, several indicators are available on PC and App in latest updates. Today, I am going to introduce VWAP as we know this indicator is highly concerned by mooers.
What is VWAP?
VWAP is an important indicator as it is a benchmark used by traders. It refers to volume weighted average price, which represents the average price a stock has traded at through the day, according to its volume and price. It is important because it provides traders with insight into both the trend and value of a stock.
VWAP provides a running total throughout the day. Therefore, the final value of the day is the volume weighted average price for the day. It offers useful information to buy-and-hold traders, especially post execution. Traders are able to know if they received a better-than-average price or a worse one that day.
How to use VWAP?
If the price is above VWAP, it is a good intraday price to sell. Otherwise, it would be a good intraday price to buy. However, it should be noticed that prices are dynamic. Therefore, a good price appears at one point might not be the one by day’s end. On upward trending days, tra...