Swiss VWAPsimple

Motivation

failed to locate free VWAP works, the one that I discovered craseh. So I made a VWAP which computes values only for the day. So computer resouces aren’t over stressed.

what’s VWAP, how is it used? 

VWAP stands for quantity weighed Average price, it computes the running sum of tick volume and the runnung sum of price times tickvolume. The division of these sums result in a weighed price (Sum P*V/Sum V). The calculation starts usually at midnight. The values are strongly dependent in the beginning time. Be cautious if you have assets not starting at midnight. Also the calculation gets more and more unprecise during the day because the sums get bigger and bigger during the day and errors add.

VWAP is a sort of equilibrium price. It might divide the day in a long and short bias zone. I recommend to use Pivot Points, SMA200 and EMA1000 in addition to establish a daily bias dividing line. So if you have your long and short zone only trade long in the long zone and vice versa. You might go short in a long zone but the price must have a reasonable distance from the daily bias border line or the VWAP.

VWAP shows you, too, if you are in a sideways phase if price is near VWAP (and SMA200, SMA1000, Pivot Point).

[spoiler title=”Read More…”]

Principle:

Extended long zone, beware of bull traps

…………………………………………

Long zone, no shorts

———————————————–  VVAP

Short zone, no longs

…………………………………………

Extended short zone, beware of bear traps

Inputs

useBarsSinceMidnight => Normal use set it to true, with closed markets you have to set it > Start point of VWAP (number of bars back) if useBarsSinceMidnight ist false

Show comment => show comment which shows distance to vwap

Comment says that you might go short in a long area => Comment tells you that you might go short in a long situation

Comment says that youmigt go long in a short area => Comment tells you that you might go short in a short situation

let the Indicator talk, vwap cross => When price crosses vwap it says  “vwap cross”

Defines warning range, too much warnings make it smaller => Tuning of the warning, set it smaller for currencies, when Vwap-Distance to price is zero, the warning comes

inpArrowCode => Wingdings font code of Mt5, cross is code 251

inpShowDistanceLabel => Show distance Ask-VWAP by label

XDISTANCE => Dstance for label X-direction

YDISTANCE => Distance for label Y-direction

inpFontSize => Fontsize for label

inpVwapText1 bis 4 => Texts for label

Timeframe

Use M1 to H1. VWAP should be invariant to timeframes. But because of rounding errors it is never exact the same in various timeframes.

[/spoiler]