Versions:
- 2016-06-15; v1.49; Code Improvement
- 2016-01-11; v1.47; Code Improvement
- 2016-01-11; v1.46; Code Improvement
- 2016-01-11; v1.45; Code Improvement
- 2015-12-29; v1.43; Initial Public Release
Hey there, fellow traders! Today, let’s dive into the world of the Volume Weighted Average Price (VWAP) and how you can leverage the VWAP Lite indicator on MetaTrader 5. This handy tool is primarily used by algorithms and institutional traders to determine where a stock is trading relative to its volume weighted average for the day. Notably, day traders also find VWAP invaluable for gauging market direction and filtering trade signals.
Before you jump in and start using VWAP, it's crucial to grasp how it's calculated, how to interpret its signals, and, equally important, the limitations of this indicator. For a deeper understanding, check out this detailed guide on Volume Weighted Average Price.
This VWAP indicator is based on the description provided by Investopedia, which you can explore further here.
What's cool about this indicator is that it comes with three different lines: the Daily VWAP, which is calculated based on intra-day values, and the Weekly and Monthly VWAPs, which take into account the start of the week and month, respectively.
Each of these lines operates independently. By default, only the intra-day line is enabled, but you can easily activate the others through the properties panel.
Thanks for checking out this code! I’m eager to hear your thoughts, so don’t hesitate to drop a comment or leave a rating!
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