Daily VWAP - MetaTrader 5 Script | Forex Indicators Download - MT4/MT5 Resources

The Daily VWAP (Volume Weighted Average Price) is a precisely coded custom indicator designed to provide traders with a key part of intraday analysis: the Volume Weighted Average Price, with daily resets. Unlike traditional moving averages, the volume-weighted average price incorporates trading volume into its calculations, giving greater weight to price where there is more trading activity. This makes it an extremely valuable tool for measuring the true fair value of an asset throughout the trading day.

The indicator calculates the cumulative sum of (price * volume) divided by the daily cumulative volume, starting again at the beginning of each new trading session. It draws a smooth line directly on the chart, allowing you to easily visualize where the majority of today's volume is occurring relative to price.

Why use daily volume weighted average price?

Determining intraday fair value: Knowing the average price at which an asset trades (adjusted for volume) provides a clear baseline for bullish or bearish sentiment.

Strategic Entry and Exit Points: Many institutional traders use VWAP as a key reference point. Prices trading above VWAP may indicate bullish sentiment, while prices trading below VWAP may indicate bearish sentiment. This provides valuable insights into potential entry and exit strategies.

Trend Confirmation: Use VWAP to confirm the strength of intraday trends. Strong trends usually result in price remaining unchanged relative to the volume-weighted average price (VWAP).

Simple and uncluttered: Despite the complex calculation, the daily volume-weighted average price is presented as a clear line on the chart, keeping your analysis clear and focused.

Features of this source code:

Daily Reset: VWAP calculations automatically reset at the start of each new trading day, providing a fresh perspective on daily market activity.

Robust calculations: Accurate calculation of typical prices and quantities using standard MQL5 functions.

Clean drawing: Displays a distinct blue line on the chart for easy identification.

Open Source: The complete MQL5 source code is provided, allowing full transparency, learning and further customization by the community.

Attachment download

📎 daily_vwap.mq5 (7.23 KB)

Source: MQL5 #61090