VWAP1
Filter
VWAP 1 Filter (VWAP1)
Find each stock's VWAP value in dollars, starting at today's open, in real time, with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The VWAP 1 filter returns the volume weighted average price starting at today's open, in dollars. It is one of five anchored VWAP values in Trade Ideas.
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Streaming Alerts check the VWAP 1 ($) filter the moment each alert fires, and Top Lists can sort by it.
How Trade Ideas finds it: set the min value to $5 to see stocks with a VWAP value currently over $5. Set the max value to $5 to see stocks with a VWAP value currently under $5. See Trade Ideas plans and pricing to run it live.
How the VWAP 1 filter works
Our VWAP 1, 2, 3, 4 and 5 filters provide the 5 anchored VWAP values in dollars.
The VWAP 1 filter refers to the Volume Weighted Average Price calculated over a specific period. In this case, starting at todays open. VWAP is a trading benchmark that gives the average price a stock has traded at throughout the trading day, weighted by volume.
Here's how the VWAP 1 filter works:
- Calculation of VWAP: VWAP is calculated by multiplying the price of each trade by the volume of that trade, summing up these values, and dividing the total by the cumulative volume traded over the period. In the case of VWAP 1, it represents the VWAP over the last trading day.
- Application in Trading: Traders use VWAP 1 as a reference point to assess the average price levels at which significant trading activity has occurred during the trading day.
- Intraday Analysis: VWAP is typically calculated throughout the trading day, updating continuously as new trades occur. Traders can monitor VWAP 1 throughout the day to gauge the price levels relative to the average price, providing insights into market sentiment and potential trading opportunities.
VWAP 1 filter settings
The settings of each Trade Ideas filter are defined in the Window Specific Filters Tab located in the Configuration Window of your Alert or Top List (Screener) window.
Here is how to setup the filter in your configuration window:
- Set the min value to $5 to see stocks with a VWAP value currently over $5.
- Set the max value to $5 to see stocks with a VWAP value currently under $5.
Using the VWAP 1 Filter
Several trading strategies can be employed with the VWAP 1 filter. Here are a few examples:
- Mean Reversion Strategy: Traders anticipate that the price will revert to the mean represented by VWAP 1 after a significant deviation. When the current price deviates significantly below VWAP 1, indicating oversold conditions, traders may consider buying opportunities, anticipating a bounce back towards VWAP. Conversely, when the price deviates significantly above VWAP 1, indicating overbought conditions, traders may consider selling opportunities, anticipating a pullback towards VWAP.
- Breakout Strategy: Traders look for breakout opportunities when the price moves significantly above or below VWAP 1. If the price breaks out above VWAP 1 with significant volume, it may indicate a bullish breakout. Traders can buy the stock with the expectation of further upward movement. Conversely, if the price breaks out below VWAP 1 with significant volume, it may indicate a bearish breakout. Traders may consider short-selling the stock.
- Trend Confirmation Strategy: Traders use VWAP 1 to confirm the direction of the trend. In an uptrend, if the price consistently remains above VWAP 1, it confirms the bullish sentiment, and traders may consider buying opportunities. Conversely, in a downtrend, if the price consistently stays below VWAP 1, it confirms the bearish sentiment, and traders may consider short-selling opportunities.
Filters to combine with VWAP 1
Alerts to pair with the VWAP 1 filter
Categories
FAQ
What is anchored VWAP?
Add the VWAP 1 filter (VWAP1) to a Trade Ideas Streaming Alerts or Top List (Screener) window. Set the min value to $5 to see stocks with a VWAP value currently over $5. Set the max value to $5 to see stocks with a VWAP value currently under $5.
What is the VWAP 1 ($) filter?
The VWAP 1 filter returns the volume weighted average price starting at today's open, in dollars. It is one of five anchored VWAP values in Trade Ideas.
How do I see a stock's VWAP value in a scan?
Use the VWAP 1 filter (VWAP1) in Trade Ideas Streaming Alerts and Top Lists to get each stock's VWAP value in dollars, starting at today's open. The VWAP 1 filter returns the volume weighted average price starting at today's open, in dollars.