VWAP esay stratégie 2021 For day trading

 

if you have entertained the idea of day trading you have probably heard of bebop

short for volume weighted average price we whop is one of the most important

benchmarks when looking at inner day charts graphically showcasing some of

the most important aspects regarding astocks movement in the short term

providing traders with insight into both the trend and value of a security bebop

is definitely a benchmark you want to know and understand as you step into

trading the goal of this indicator is relatively simple on the surface similar

to moving averages be Wahb will reflect a bullish sentiment when prices are

above the bebop and bearish when prices are below what makes it unique is that

it takes into account volume or to your mild trading taking place eliminating

much of noise that occurs throughout the day helping traders gauge prices as its

root the benchmark essentially helps you determine whether your entry point is

good confirming a trend and guiding you into any decision you make to buy or

short the volume weighted average price appears as a single line on inner day 

charts similar to how a moving average looks however these two indicators are 

calculating totally different things Lee lap is calculating the sum of a

price multiplied by volume divided by total volume

this may sound confusing and makes no sense but once you begin to piece the

components together everything will come together in your head to fully

understand what you are looking at we are going to manually create our own

Bebop to start we begin with the formula I know you're getting ready to click on

 a different video but I promise you the math is not very complicated and if you

can get through this part you will have a much better understanding of one of

the most important indicators when it comes to day trading bebop is nothing

more than the dollars traded for every transaction aka the price multiplied by

the number of shares traded and then dividing that number by the total shares

traded to calculate the benchmark yourself on an assumed 5-minute chart

you will first need to find the average price to stock trader that over the

first five minute period of the day you can do this by simply opening excel

 sheet adding the high price in that  period the low price in that period and

the closing price in that period then divide

that number by three now take that number and multiply it by the volume or

the number of shares traded within that five Bennett period now put that number

in the column PV on your excel sheet divided by the volume again now this is your Viva value congratulations to

maintain the Viva value throughout the day continue to add the pv value from

each period to the prior values divide this total by the total volume up to

that point to make this easier in a spreadsheet create columns for the

cumulative PV and a cumulative volume both these cumulative values are divided

by each other to produce the V Watt thankfully for you any decent trading

platform will have Viva benchmarks that do this all for you no need for this

painstaking math but understanding this math will help you realize the strengths

and weaknesses of this benchmark VF is a single day indicator and it's restarted

at the open of each new trading day attempting to create an average we pop

over many days could mean that the average becomes distorted from the true

leave a breeding as described above fair warning though while some institutions

may prefer to buy when the price of a security is below the be WEP or cell

when it's above we WEP is not the only factor to consider in strong uptrend the

price may continue to move higher for many days without dropping below the V

WEP at all or occasionally therefore waiting for the price to fall below

 VWep could mean a missed opportunity if prices are rising quickly also due to

the nature of the math bebop is very dynamic moving up and down in the

beginning of the day well towards the end it becomes more smoothed out as the

volume total increases many traders love to use it in the first few hours of

trading abandoning the benchmark in the afternoon you