hey all, I'm new to the forum and need a little help. I trade part time as discretionary equities trader. I usually go off of 5 and 15min charts. I find 15 and 65 EMA's pretty useful, but lately have been wanting to use VWAP as I realize its pretty useful. I trade through IB. when setting up VWAP the stock settings are 9 day standard deviation period and 1.0 standard deviations. when I use those setting the VWAP line seems very sticky to the candlestick movements. when I watch videos of traders using VWAP their candles can go above and below by quite a bit, but my VWAP just follows the candles. hope that was a clear explanation of my problem. is there a better setting I can have my VWAP on? any advice would be greatly appreciated. thanks!
uploaded a picture to show what I mean. my stock VWAP looks nothing like the ones i see in training videos.
I guess under VWAP you understand Volume Weighted Average price. It is calculated from the begining of a trading session, See http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:vwap_intraday and http://www.marketvolume.com/technicalanalysis/vwap.asp and it does not have bar period and STD in it's settings. unless you understand something different under VWAP I am confused how you calcuate it.
This should be what it would look like IB data, Medved Trader software for accessing it: http://www.medvedtrader.com/
Volume-weighted-average-price is just a type of moving average, "single line." Yes, every one wants to be a hero and put there own twist on there's, such as the volume waited average price (VWAP) and moving volume weighted average price (MVWAP) (cross-over technique).
Does not look like VWAP at all - should be one line. Whatever you posted looks more like Moving Average envelopes.
A single line would be the current value. It is also available though I did not show it on this particular chart. The center line on the chart above is charting the VWAP value as it changes throughout the day.
thanks for the replies guys. I've been out of town and not around a computer. so i wonder what i need to change in my chart settings to have a more traditional looking VWAP? right now its set to a 65 day SD period and 2.0 SDs. thanks!
Viktor, if referring to the chart I posted, let me clarify - that is showing TWO indicators. The center line is the VWAP. The upper/lower bands are from "VWAP Bands" indicator with the width of 1 Standard Deviation that was calculated over a period of 14