WAP Trading

Discussion in 'Trading' started by Profit, Oct 16, 2005.

  1. Profit


    Can someone please explain to me what the WAP is?

    Also has anyone been successful trading the WAP power hour?

  2. Weighted average price..maybe :p
  3. bighog

    bighog Guest

    VWAP Volumn weighted average price.

    A computer dittie that takes a block trade and doles it out to smaller orders being filled or something like that. it is new to me also.
  4. bighog

    bighog Guest

    and since i am not a size trader, i din't worry about it....:D
  5. Profit


    From what I know the VWAP is used by the institution, they are rated against this value when they make purchase for stocks.

    The power-hour is at the close around 3pm... this is when the VWAP trading kicks in, it can flood the market with a lot of customer buy or sell orders by the inst.

    on a strong day when a stock has pulled back it will cause the stock to close up higher at the close. It can be one of the best time to trade the move, and if you're short, you're going to get squeezed.

    If you've ever seen the market close near it's high at the end, that VWAP, or break down!

    I guess my question was has anyone been successfully trading this. The other question is exactly how do the inst use the VWAP? It could trigger buying or selling and I would like to find or more about this, rather than the simple definition and terminology.