VWAP Calculator is a tool that is used to calculate the volume-weighted average price of a currency pair or a stock. This will help you to check either the volume-weighted average price of a stock is below/above the original price of a security. If the price of a security is below the VWAP then it indicates a bearish trend. It indicates a bullish trend if the price is above the VWAP. Follow this link to learn about VWAP indicator in detail.
How to use the VWAP calculator?
It is very easy to use. Write the prices and volume in the cells of the calculator. Default values are set already and then can be overwritten easily.
Enter the following details in the fields of the VWAP calculator
- Candlestick high price
- low price of the candlestick
- The closing price of the candlestick
For higher timeframe analysis, use the weekly or monthly candlesticks of security.
Formula Used in VWAP Calculator
This calculator works on two values.
In the first step, this calculator calculates the average price using high, low and closing prices. Then it multiplies the average price with volume to calculate VP. After that, it divides the VP by the original volume V.
VWAP=∑(price x Volume)/ ∑Volume