Need help setting up VWAP

[godblsmnymkr]

hey all, I'm new to the forum and need a little help.
I trade part time as discretionary equities trader. I usually go off of 5 and 15min charts. I find 15 and 65 EMA's pretty useful, but lately have been wanting to use VWAP as I realize its pretty useful.

I trade through IB. when setting up VWAP the stock settings are 9 day standard deviation period and 1.0 standard deviations. when I use those setting the VWAP line seems very sticky to the candlestick movements. when I watch videos of traders using VWAP their candles can go above and below by quite a bit, but my VWAP just follows the candles. hope that was a clear explanation of my problem.
is there a better setting I can have my VWAP on?


any advice would be greatly appreciated. thanks!

 

[godblsmnymkr]

uploaded a picture to show what I mean. my stock VWAP looks nothing like the ones i see in training videos.

 

[viktor_k67]

hey all, I'm new to the forum and need a little help.
I trade part time as discretionary equities trader. I usually go off of 5 and 15min charts. I find 15 and 65 EMA's pretty useful, but lately have been wanting to use VWAP as I realize its pretty useful.

I trade through IB. when setting up VWAP the stock settings are 9 day standard deviation period and 1.0 standard deviations. when I use those setting the VWAP line seems very sticky to the candlestick movements. when I watch videos of traders using VWAP their candles can go above and below by quite a bit, but my VWAP just follows the candles. hope that was a clear explanation of my problem.
is there a better setting I can have my VWAP on?


any advice would be greatly appreciated. thanks!

I guess under VWAP you understand Volume Weighted Average price. It is calculated from the begining of a trading session, See
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:vwap_intraday
and
http://www.marketvolume.com/technicalanalysis/vwap.asp
and it does not have bar period and STD in it's settings.

unless you understand something different under VWAP I am confused how you calcuate it.

 

[j_medved]

This should be what it would look like

IB data, Medved Trader software for accessing it: http://www.medvedtrader.com/

 

[Zodiac4u]

uploaded a picture to show what I mean. my stock VWAP looks nothing like the ones i see in training videos.

Volume-weighted-average-price is just a type of moving average, "single line."
Yes, every one wants to be a hero and put there own twist on there's, such as the volume waited average price (VWAP) and moving volume weighted average price (MVWAP) (cross-over technique).

 

[viktor_k67]

This should be what it would look like

Does not look like VWAP at all - should be one line. Whatever you posted looks more like Moving Average envelopes.

 

[j_medved]

Does not look like VWAP at all - should be one line. Whatever you posted looks more like Moving Average envelopes.

A single line would be the current value. It is also available though I did not show it on this particular chart. The center line on the chart above is charting the VWAP value as it changes throughout the day.

 

[godblsmnymkr]

thanks for the replies guys. I've been out of town and not around a computer.

so i wonder what i need to change in my chart settings to have a more traditional looking VWAP? right now its set to a 65 day SD period and 2.0 SDs.
thanks!

 

[viktor_k67]

thanks for the replies guys. I've been out of town and not around a computer.

so i wonder what i need to change in my chart settings to have a more traditional looking VWAP? right now its set to a 65 day SD period and 2.0 SDs.
thanks!

Define WVAP, and SD and why youe WVAP has upper and lower bands?

 

[j_medved]

Viktor, if referring to the chart I posted, let me clarify - that is showing TWO indicators. The center line is the VWAP. The upper/lower bands are from "VWAP Bands" indicator with the width of 1 Standard Deviation that was calculated over a period of 14