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:...
stop order below a previous low point. An exit target could potentially be a previous high, the upper band, or any other technical indicator. As with some other indicators, VWAP might be more effective when combined with another indicator like the Relative Strength Index (RSI) or moving ...
To calculate the typical price, you need it multiplied by the volume traded at each price level by the price and then divide by the total volume traded. This formula for calculating VWAP is essential for successful day trading. However, several factors can affect the accuracy of your VWAP cal...