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VWAP Multi Time Frame Indicator for ThinkOrSwim

$49.99 $39.99

I love volume. To me, volume is the market. So it makes sense for trades to be highly informed by what’s happening with volume, and it helps to know things like what price the most shares have been traded at for the day, or what price over the past hour is considered “fair value”. When I started looking at moving average systems and so forth, I naturally gravitated toward volume weighted average price because it just made sense. And when you start to understand how professional traders at large hedge funds and such are incentivized to trade relative to VWAP, it really becomes a no brainer. Volume weighted average price, or VWAP for short, is probably the first indicator I would want on my chart next to volume itself.

Description

VWAP Indicator for ThinkOrSwim

I love volume. To me, volume is the market. So it makes sense for trades to be highly informed by what’s happening with volume, and it helps to know things like what price the most shares have been traded at for the day, or what price over the past hour is considered “fair value”. When I started looking at moving average systems and so forth, I naturally gravitated toward volume weighted average price because it just made sense. And when you start to understand how professional traders at large hedge funds and such are incentivized to trade relative to VWAP, it really becomes a no brainer. Volume weighted average price, or VWAP for short, is probably the first indicator I would want on my chart next to volume itself.

Now, stay with me on this one, because this concept may be a bit foreign to most of you, but I think there’s an edge here that is worthy of your attention. For quite awhile I’ve been following the 1 and 4 hour intraday VWAPs along with the normal daily VWAP. Take a look at the chart below as an example:

Four-hour and 1-hour intraday VWAPs for ThinkOrSwim
Four-hour and 1-hour intraday VWAPs for ThinkOrSwim

Notice how at each of the “squiggles” there is fairly good support line, and at each of the arrows, pivots seem to form right at the 1 or 4 hour VWAP. I don’t think this is a coincidence. When you understand that VWAP is the market’s most fair price for its given time period, you understand why retracements into VWAP get bought in uptrends, and get sold in downtrends. And this is not some obscure chart I dug up, either — this is Facebook from just yesterday (12/26/16). These kinds of charts happen all the time because VWAP is how institutions and professional traders evaluate the fairness of a stock’s price.

Anyway, I’m loving these intraday VWAP indicators, but up until now there wasn’t one available for ThinkOrSwim — I have several VWAP indicators in my ThinkOrSwim, but all of them only plot daily VWAP or higher. Evidently nobody could figure out a good way to plot them intraday. So up until now I was having to keep Sierra Chart open in order to plot the intraday VWAPs. But I finally decided to sit down yesterday and dedicate some long hours to figuring out a way to do it in ThinkOrSwim, and so this is the result of that work. I don’t know if anyone else will be as interested in this indicator as I am, but I thought I’d at least put it out there in case anyone finds it as useful as I do.

This indicator will work with any of the intraday timeframes … 1 hour, 4 hour, even 30 minute, etc. It also can plot daily, weekly, and monthly. Additionally, it can plot 3 standard deviation bands around whatever VWAP you choose to plot, and if you want several VWAPs plotted on one chart — as I do — you can simply add multiple instances of this indicator to the same chart.

Another thing this chart does that a lot of users of other platforms might be interested in is that it can be colorized based on whether price is above or below VWAP (for example, it can plot red in a downtrend, green in an uptrend).

What You Get

  1. Multiple timeframe intraday VWAP indicator
    • Plots 1 hour VWAP, 4 hour VWAP, etc.
    • Plots Day, Week, Month VWAPs
    • Can also be used to plot normal Day/Week/Month VWAPs in place of the basic indicator
    • Optionally plots up to 3 standard deviation bands
  2. Custom timeframe VWAP
    • Calculates a custom VWAP from any date you specify in YYYYMMDD format
    • Works on both intraday and historical charts
    • Can be used to plot a custom VWAP since election day, major tops and bottoms in the market, etc.
    • Optionally plots up to 3 standard deviation bands
Custom Timeframe VWAP indicator for ThinkOrSwim
Custom Timeframe VWAP indicator for ThinkOrSwim showing 2 different VWAPs from election day and from 2016 lows.

 

Questions?

We’re always happy to answer questions, and full email support is provided with every purchase! We’ll make sure you get up and running. If you have questions, email us here or leave a comment below!

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