Using VWAP (Volume Weighted Average Price)

Using VWAP (Volume Weighted Average Price)

August 6, 2018
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In addition to the standard moving averages, one should look at the Volume Weighted Average Price.   Just like how the exponential moving averages give weight to recent price action, the VWAP weighs the amount of volume that traded at each price more heavily. The VWAP gives us a good understanding of the average price of the stock over the course of the day, because it factors in how many shares were traded.

Example of chart with moving averages, VWAP and candlesticks