VWAP5
Filter
VWAP 5 Filter (VWAP5)
Find each stock's VWAP value in dollars, over the last trading week, in real time, with Trade Ideas Streaming Alerts (Scanner) and Top Lists (Screeners). The VWAP 5 filter returns the volume weighted average price over the last trading week, in dollars. It is one of five anchored VWAP values in Trade Ideas.
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Streaming Alerts check the VWAP 5 ($) 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 trading week. See Trade Ideas plans and pricing to run it live.
How the VWAP 5 filter works
Our VWAP 1, 2, 3, 4 and 5 filters provide the 5 anchored VWAP values in dollars.
The VWAP 5 filter refers to the Volume Weighted Average Price calculated over a specific period. In this case, over the last trading week. 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 5 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 5, it represents the VWAP over the last trading week.
- Application in Trading: Traders use VWAP 5 as a reference point to assess the average price levels at which significant trading activity has occurred over the last 5 trading days.
- Intraday Analysis: While VWAP is typically calculated throughout the trading day, VWAP 5 provides a longer-term perspective on the average price weighted by volume over the last 5 trading days. Traders can monitor VWAP 5 throughout the current trading day to gauge price levels relative to this longer-term average.
VWAP 5 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 trading week.
Using the VWAP 5 Filter
Several trading strategies can be employed with the VWAP 5 filter. Here are a few examples:
- Breakout Trading: Breakout traders can use the VWAP 5 filter to identify breakout opportunities. If the current price breaks out above or below the VWAP 5 level with significant volume, it may signal the beginning of a new trend. Traders can enter long positions on bullish breakouts above the VWAP 5 and short positions on bearish breakouts below it.
- Pullback Trading: Pullback traders may use the VWAP 5 filter to identify potential pullback opportunities within the trend. If the price retraces towards the VWAP 5 after a strong move in the trend direction, it may offer a favorable entry point. Traders can enter positions on pullbacks, anticipating the resumption of the prevailing trend.
- Scalping: Short-term traders can use the VWAP 5 filter to scalp intraday price movements. By entering and exiting positions quickly based on deviations from the VWAP 5, traders can capture short-term profits from rapid price fluctuations within the trading session.
Filters to combine with VWAP 5
Alerts to pair with the VWAP 5 filter
Categories
FAQ
What is anchored VWAP?
Add the VWAP 5 filter (VWAP5) 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 $20 over the past trading week.
What is the VWAP 5 ($) filter?
The VWAP 5 filter returns the volume weighted average price over the last trading week, 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 5 filter (VWAP5) in Trade Ideas Streaming Alerts and Top Lists to get each stock's VWAP value in dollars, over the last trading week. The VWAP 5 filter returns the volume weighted average price over the last trading week, in dollars.