VWap Bars

VWAP Bars (Volume Weighted Average Bars) are candlestick charts where each candle is based on the VWAP instead of the traditional open-high-low-close (OHLC) price. VWAP is a trading indicator that calculates the average price a security has traded at throughout the day, weighted by volume. It provides a clearer picture of the market's average trading price, especially in intraday trading.
Manufacturer: nt8indicators
SKU: VWB
$9.90

How VWAP Candles Work:

  • VWAP is calculated as: VWAP=∑(Price×Volume)∑(Volume) where "Price" is the typical price of each candle Price = (High + Low + Close) / 3 

  • Each VWAP Candle uses the VWAP value for the period as its close. The open price is the VWAP from the previous period, and the high and low are calculated similarly based on the price data weighted by volume.

Characteristics of VWAP Candles:

  • The close price of each candle corresponds to the VWAP for that period.
  • The high and low prices are derived from the highest and lowest points reached in relation to the VWAP during that period.

    They are supposed to be used in conjunction with another bar type as shown on the product picture
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