What is VWAP?
VWAP is the average price at which a security has traded throughout the day, calculated based on both volume and price. It is calculated intraday and considers one day’s trading activity.
VWAP serves as a benchmark for individuals and institutions to assess whether they achieved good or poor execution of their orders.
General Strategies
When a security is trending, VWAP provides valuable market information.
- If the price is above VWAP, it’s a good intraday selling opportunity.
- If the price is below VWAP, it’s a good intraday buying opportunity.Buying securities below VWAP means achieving a better-than-average price by the end of the day.
Where do you find it in the TFG app?
The VWAP can be located in two areas:
- The watchlist
Search for the VWAP column
2. The order pad
To display the VWAP, in the bottom right click Show More
Then
2. The order pad
Then
What you learn here has been used in our Trade for Good software.
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