VWAP Indicator

1. Become Master Indicator Trader
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2. Disclosure
The views expressed in this Session are entirely of the authors, for the Education purpose
only and they are not responsible for any losses caused due to these opinions or views. The
views are based upon the logic, valuations and reasons. Yet, they might go materially wrong
owing to market sentiments and future developments. Participants should do their own
home-work and even deep study on each and every point This is only and only for private
circulation, This session is totally free “Seva”. Seek yours’ professional’s advice and golden
guidance before acting on any recommendation.
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Mitul Mehta,
Founder & CEO,
BIMI Consultant,
Author, Trader, Investor, Mentor

3. Topic
• 1. Indicators
• 2. VWAP
• 3. Option Chain
• 4. Question & Answer
• 5. Information on Professional Traders
League.
• 6. Scrip selection for Intraday. (If time permits)
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4. Types of indicators
1. Leading Indicators
• Leading Indicators.
• Leading indicators are those created to precede the price
movements of a security giving predictive qualities. Two of the most
well-known leading indicators are the Relative Strength Index (RSI)
and the Stochastics Oscillator. Legging Indicators
• lagging indicator
• is one that follows price movements and has less predictive qualities.
The most well-known lagging indicators are the moving averages and
Bollinger Bands®. The usefulness of these indicators tends to be
lower during non-trending periods but highly useful during trending
periods. This is due to the fact that lagging indicators tend to focus
more on the trend and produce fewer buy-and-sell signals.
1. Leading Indicators
• Leading Indicators.
• Leading indicators are those created to precede the price
movements of a security giving predictive qualities. Two of the most
well-known leading indicators are the Relative Strength Index (RSI)
and the Stochastics Oscillator. Legging Indicators
• lagging indicator
• is one that follows price movements and has less predictive qualities.
The most well-known lagging indicators are the moving averages and
Bollinger Bands®. The usefulness of these indicators tends to be
lower during non-trending periods but highly useful during trending
periods. This is due to the fact that lagging indicators tend to focus
more on the trend and produce fewer buy-and-sell signals.
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5. 2. Volume-Weighted Average Price (VWAP)
The VWAP can be calculated over the entire trading session
• The VWAP study calculates
the volume-weighted average
price throughout the trading
session.
• The starting bar can be:
– Start of the day
– Start of session
• Choose any of the following
bar values for the VWAP
calculation:
– Open
– High
– Low
– Close
– Mid-point price
– HLC/3
Key Benefit: The VWAP study provides the current
estimated volume-weighted average price for
traders needing the information to manage orders.
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6. Amibroker AFL
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7. Volume Weighted Average Price Signals
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The signals from the VWAP could be confusing at some point. The reason for
this is that the same signal from the indicator could be interpreted in two
different ways.
The signals from the VWAP could be confusing at some point. The reason for
this is that the same signal from the indicator could be interpreted in two
different ways.

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Support and Resistance with the VWAP
The Volume Weighted Average Price line could be used as a support or resistance for the price action. Since
the indicator averages the total periods for the day, it has psychological meaning on the chart. If the price
approaches the VWAP line from below and starts hesitating in the area, then the VWAP may be considered
resistance. If this happens in the opposite direction, then the indicator might be able to support the price,
creating a bullish bounce. Below you will see an example of the VWAP as an effective support:
Support and Resistance with the VWAP
The Volume Weighted Average Price line could be used as a support or resistance for the price action. Since
the indicator averages the total periods for the day, it has psychological meaning on the chart. If the price
approaches the VWAP line from below and starts hesitating in the area, then the VWAP may be considered
resistance. If this happens in the opposite direction, then the indicator might be able to support the price,
creating a bullish bounce. Below you will see an example of the VWAP as an effective support:

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VWAP Breakout
When the price goes above the VWAP indicator this means that the strength of the bullish move is strong. It
is so strong that the price has managed to break its average value on the chart. Therefore, we get a long
signal. The same is in force for a bearish breakout, but in the opposite direction.
At the same time, if at the end of the trading day the VWAP is smooth, but visibly inclined, this speaks of a
strong trend. Have a look at the image below:
VWAP Breakout
When the price goes above the VWAP indicator this means that the strength of the bullish move is strong. It
is so strong that the price has managed to break its average value on the chart. Therefore, we get a long
signal. The same is in force for a bearish breakout, but in the opposite direction.
At the same time, if at the end of the trading day the VWAP is smooth, but visibly inclined, this speaks of a
strong trend. Have a look at the image below:

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Other Event Details:
-------------------------------
31-July : PTC – Live Market Trading
01-Aug : Free Seminar - Live Market Trading
04-Aug : PTC - Ahmedabad
05-Aug : PTC - Ahmedabad
11-Aug : PTC - Hyderabad
12-Aug : PTC - Hyderabad
19-Aug : MIT - Online Paid Seminar