Daily VWAP: Your Essential Intraday Fair Value Indicator
The Daily VWAP (Volume Weighted Average Price) is a must-have custom indicator crafted specifically for traders looking to enhance their intraday analysis. Unlike your regular moving averages, VWAP factors in trading volume, giving more weight to prices where the action is hot. This makes it an invaluable tool for spotting the genuine fair value of an asset as the trading day unfolds.
Here’s how it works: the indicator calculates the cumulative sum of (Price * Volume) divided by the total volume for the day, resetting at the start of each new trading session. The result? A smooth line on your chart that clearly shows where most of today’s trading volume has been concentrated relative to price.
Why should you use Daily VWAP?
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Identify Intraday Fair Value: Get a clear picture of the average price at which an asset is traded, adjusted for volume, giving you a solid benchmark for gauging bullish or bearish sentiment.
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Strategic Entry & Exit Points: Many institutional traders swear by VWAP as a key reference point. If the price is above VWAP, it often signals bullish momentum, while trading below it might indicate bearish control. This insight can be gold for planning your entry and exit strategies.
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Trend Confirmation: Use VWAP to back up the strength of an intraday trend. A strong trend typically sees the price holding steady in relation to VWAP.
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Simple & Uncluttered: Despite its complex calculations, Daily VWAP presents itself as a straightforward line on your chart, keeping your analysis neat and focused.
Features of this Source Code:
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Daily Reset: The VWAP calculation refreshes at the start of each trading day, offering a new perspective on daily market dynamics.
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Robust Calculation: It employs standard MQL5 functions for precise computation of typical price and volume.
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Clean Plotting: You’ll see a distinct blue line on your chart for easy identification.
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Open Source: Full MQL5 source code is available, ensuring complete transparency and the opportunity for further customization by the trading community.
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