VWAP_Close - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

VWAP closing price is displayed directly on the price chart. This indicator defines liquidity points and volume-weighted average closing prices. Calculations are performed during the entire trading session (intraday). Therefore, VWAP is primarily designed for day trading.

The calculation requires multiplying the cumulative value of the volume by the typical price. This value is divided by the cumulative volume. The current price value relative to VWAP may point in the direction of the main trend of the day: if the price is below the indicator, the downward trend dominates; if the price is above the indicator, the upward trend is stronger. Since VWAP calculates volume-weighted prices, its values ​​will correspond to high-liquidity intervals. This feature allows defining potential points of activity for major market players.

This indicator does not point directly to large orders in any direction. Instead, it shows price levels with relatively high trading volumes, which is a result of the high liquidity required by major players to execute trades.

VWAP can also be used to assess market entry levels. A long order below this indicator may be a good entry opportunity as it occurs below the average price level. Short orders above the indicator value mean selling above the average price level.

The indicator was first implemented in MQL4 and published in the code base of mql4.com on May 10, 2016.

Figure 1. VWAP_OFF

Attachment download

📎 vwap_close.mq5 (5.07 KB)

Source: MQL5 #15535