Jump to content

We have moved to Discord. Please click here to join us in the Trading Terminal Discord server.



These forums are read-only.

Dylan irish

VWAP inconsistencies

Recommended Posts

Dylan irish

So I was always told or under the impression that the VWAP number in the montage is correct and the line on the graphs is just an estimation. Today I lost a couple trades because of it so I feel like it must be backward but I could have swore thats what the more experienced traders were saying. in the photos you will see VWAP which is blue, and then the number which is extremely different than the actual value. It was almost a dollar off and for a stock that moves $3 a day that is a huge inconsistency. Does anyone have any experience with this? I  also changed VWAP to calculate with pre and post market data and it never changed more than one cent. Picture 1 is MU- VWAP on the blue line is $83 and VWAP is in the montage is 82.69 in the top Right, it was previously $1 less before this photo. Picture  number 2 is JPM with a full $1 difference in VWAP. Whats odd is that in both these examples the stock is responding to the VWAP line on the charts as if it is the accurate one. Any insight?

Bearbull forum help 1.PNG

bearbull forumn help 2.PNG

Share this post


Link to post
Share on other sites
Dylan irish
5 hours ago, peterB said:

i believe it is answered here

So I saw this post however I guess what I am saying is I am experiencing the exact opposite circumstance. Dimah is saying that the VWAP in the Montage is correct however as you can see looking at any volatile stock yesterday and the two I screenshotted above, stocks are clearly respecting the (false) VWAP on the charts and are going right through the "correct" VWAP in the charts. JPM bounced off of VWAP in that example on the chart which is apparently imaginary and then MU settled on the imaginary or false VWAP as well. I understand that these are only two examples but if you look at any stock from anyone's watchlist from yesterday it is the same story. I really don't understand

 

Share this post


Link to post
Share on other sites
Dylan irish

unfortunately I couldn't reply to that topic because it was closed for some reason

Share this post


Link to post
Share on other sites
Bryan W

It's just one more technical level among many and is not set in stone.  I prefer to view the VWAP more as an area. In some cases I'll take a partial when it punches through or fails to do that, but I'm also looking at levels beyond as well. VWAP will sometimes be an initial target for me as in I expect the price to move in that direction if it is extended...

Share this post


Link to post
Share on other sites

[[Template core/front/global/mobileNavigation is throwing an error. This theme may be out of date. Run the support tool in the AdminCP to restore the default theme.]]

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.