The Volume Weighted Average Price (VWAP) is just an indicator, nothing more. It’s not a holy grail, it’s not a signal to buy/sell, it’s imply the average price over a given period of time. One could argue though that the VWAP is used quite regularly in some algos, just not so sure about larger time frames. I thought it would be interesting to see where the major indices are in regards to the March, 2009 lows to the April, 2010 highs.
VWAPs Of Index ETFs
The Volume Weighted Average Price (VWAP) is just an indicator, nothing more. It’s not a holy grail, it’s not a signal to buy/sell, it’s imply the average price over a given period of time. One could argue though that the VWAP is used quite regularly in some algos, just not so sure about larger time frames. I thought it would be interesting to see where the major indices are in regards to the March, 2009 lows to the April, 2010 highs.