Let’s consider the following example. The PWI Index is a price-weighted index that includes the stocks of four companies. The information about the companies included in the index can be found in the table below: Using the formula above, we can calculate the weight of each index component:...
VWAP is calculated using the cumulative total of the price of each trade, multiplied by the volume of that trade, and then divided by total volume traded for the day. A trader can plot VWAP on thinkorswim®charts without using the formula. From theChartstab, add a symbol, and bring up ...
Vj – volume of the trade j; j– each individual trade that takes place over the defined period of time, excluding cross trades and basket cross trades. The price itself is caluclated by the following formula: Price(i)= (High+Low+Close)/3 ...