VWAP4
Filter
VWAP 4 Filter (VWAP4)
Find each stock's VWAP value in dollars, over the last 4 trading days, in real time, with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The VWAP 4 filter returns the volume weighted average price over the last 4 trading days, in dollars. It is one of five anchored VWAP values in Trade Ideas.
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Streaming Alerts check the VWAP 4 ($) filter the moment each alert fires, and Top Lists can sort by it.
How Trade Ideas finds it: set the min value to $5 and the max value to $20 to filter for stocks with a VWAP within the range of $5 to $20 over the past 4 days. See Trade Ideas plans and pricing to run it live.
How the VWAP 4 filter works
Our VWAP 1, 2, 3, 4 and 5 filters provide the 5 anchored VWAP values in dollars.
The VWAP 4 filter refers to the Volume Weighted Average Price calculated over a specific period. In this case, over the last 4 trading days. 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 4 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 4, it represents the VWAP over the 4 trading days.
- Application in Trading: Traders use VWAP 4 as a reference point to assess the average price levels at which significant trading activity has occurred over the last 4 trading days.
- Intraday Analysis: While VWAP is typically calculated throughout the trading day, VWAP 4 provides a longer-term perspective on the average price weighted by volume over the previous 4 trading days. Traders can monitor VWAP 4 throughout the current trading day to gauge price levels relative to this longer-term average.
VWAP 4 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 and the max value to $20 to filter for stocks with a VWAP within the range of $5 to $20 over the past 4 days.
Using the VWAP 4 Filter
Several trading strategies can be employed with the VWAP 4 filter. Here are a few examples:
- Mean Reversion Trading: Identify stocks that have deviated significantly from their VWAP over the past four days. Enter contrarian positions when the current price is below the VWAP, anticipating a reversion to the mean. Similarly, consider short positions when the price is above the VWAP.
- Trend Confirmation: Use the VWAP 4 filter to confirm the direction of the trend. If the current price is consistently above the VWAP over the past four days, consider entering long positions, expecting the trend to continue. Conversely, if the price consistently trades below the VWAP, consider short positions.
- Breakout Trading: Look for stocks where the current price breaks out above or below the VWAP range established over the past four days. Enter long positions if the price breaks above the VWAP range, anticipating a continuation of the uptrend. Conversely, enter short positions if the price breaks below the VWAP range, expecting a continuation of the downtrend.
- VWAP Pullback: Wait for the price to pull back to the VWAP after a significant move away from it. Enter long positions if the price pulls back to the VWAP from below, or short positions if it pulls back from above, expecting a reversal or continuation of the trend.
Filters to combine with VWAP 4
Alerts to pair with the VWAP 4 filter
Categories
FAQ
What is anchored VWAP?
Add the VWAP 4 filter (VWAP4) to a Trade Ideas Streaming Alerts or Top List (Screener) window. Set the min value to $5 and the max value to $20 to filter for stocks with a VWAP within the range of $5 to $20 over the past 4 days.
What is the VWAP 4 ($) filter?
The VWAP 4 filter returns the volume weighted average price over the last 4 trading days, 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 4 filter (VWAP4) in Trade Ideas Streaming Alerts and Top Lists to get each stock's VWAP value in dollars, over the last 4 trading days. The VWAP 4 filter returns the volume weighted average price over the last 4 trading days, in dollars.