DisclaimerInput Information
| Name | Expression | Default | Description |
| Price | Numeric | Close | Value to be used in calculating the average price |
| HiAlert | Numeric | 1000000 | Value of high alert. |
| LoAlert | Numeric | -1000000 | Value of low alert. |
Market Synopsis
The VWAP (Volume Weighted Average Price) is a measure of the price at which the majority of a given day's trading in a given security took place. It is calculated by adding the dollars traded for the average price of the bar throughout the day ("avgprice" x "number of shares traded" per bar) and dividing by the total shares traded for the day.
The VWAP value is calculated throughout the day by the TradeStation data-network and is a snapshot field available only in RadarScreen (Quotes).
There is a historical VWAP indicator (vwap_h.eld) available from the EasyLanguage Library forum, that be can plotted on a 1 minute chart.
The indicator requires a security with trade volume.
The indicator value is reset every day.
VWAP is sometimes used by institutional traders, who often break up a given trade into multiple transactions. The theory is that if the average price of a long trade is lower than the VWAP, it is a good trade. The opposite is true for short trades, average price should be higher than the VWAP.
Plot Information
| Number | Name | Default Color | Description |
| Plot1 | VWAP | White | Volume Weighted Average Price. |
