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Indicators  |  MAY 2001

Volume-Weighted Average Price by George Reyna

For Support And Resistance Volume-Weighted Average Price Here’s how to use VWAP with the Midas indicators. by George Reyna Successful traders know how important it is to evaluate volume before taking a position in the market. This concept has been much discussed, but understanding the relationship of price behavior and volume is usually an intuitive exercise. Long-term success is based on experience level and seasoned judgment. On the other hand, volume-weighted average price (VWAP) calculations can create powerful indicators that graphically represent the interaction between price and volume on one chart. This makes it easier to get a feel for market psychology and spot potential major reversals.

by George Reyna

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