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Strategies & Market Trends : Underexposed Technical Analysis
AQN 5.890+0.3%3:59 PM EST

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To: kimberley who wrote (538)9/18/2019 7:11:30 PM
From: Underexposed1 Recommendation

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kimberley

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I have never used VWAP and I thought it was not on Stockcharts but it is a newly added overlay....hmmmmm.

I found this definition

Volume Weighted Average Price (VWAP)

investopedia.com › Trading › Trading Skills & EssentialsJun 25, 2019 -

The volume weighted average price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. It is important because it provides traders with insight into both the trend and value of a security.
I am not sure how valid this benchmark is for VWAP.... Why? because an ETF volume is not a natural volume of investors.... if say there is a bullish or bear rush by investors, market makers are authorized to take measures (buying/selling shares) to counteract the over reaction.... so the price and volume is manipulated and hence the indication is manipulated.

Now true confession.... I have not tested VWAP on stocks or ETFs yet.... but I plan to and I will report what I find soon.

UE
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