VWAP BANDS INDICATOR MT5

Best VWAP (Volume Weighted Average Price) Bands Indicator for MT5. Identify the fair price, best entry, and exit price to BUY LOW and SELL HIGH.

• The VWAP Volume Weighted Average Price Bands indicator is similar to the Moving Averages and Bollinger bands indicators. In this indicator, more weight is given to volume. The indicator gives an excellent idea of ​​the support and resistance levels on the chart. In addition, the indicator shows the real value of the trading instrument. Thus, forex traders can find great trading opportunities to BUY LOW and SELL HIGH.

Forex traders can combine fair price awareness with price action. And find out the best possible entry price using the extreme bands. Determining fair value in itself is critical to the success of any trader.

VWAP Bands MT5 Indicator Trading Signals

• The EURJPY H1 chart above shows the VWAP bands in action. The middle line is the Volume Weighted Average Price (VWAP) of the trading instrument. And the upper and lower bands are formed by calculating the standard deviation from the midline. The price on the middle line is the fair value of the trading instrument.
• The best price to enter is to BUY when the price touches the extreme lower band, and the best price to enter is when the price touches the extreme upper band. Traders can hold a position and exit at the opposite signal. However, Forex traders should focus on price movement around the lower and upper bands and confirm trading signals from VWAP.

New traders can benefit from understanding the fair value of any trading instrument and BUY LOW and SELL HIGH. On the other hand, advanced traders can apply the Metatrader VWAP Bands indicator to multiple timeframes and use the TOP-DOWN approach. In addition, by understanding and comparing indicator values ​​and the position of the upper and lower bands, forex traders can plan and make profitable trades.

• Because the indicator adds more weight to volume, it reacts during high volume trading sessions. However, during other sessions, the reaction is comparatively less. What’s more, intraday traders can apply the indicator across multiple timeframes to create a fair price profile. However, the indicator works well for intraday, short and long term traders. 

Conclusion

• The Volume Weighted Average Price ( VWAP ) is indeed the best forex trading indicator to identify the fair value price of any trading instrument. While the Upper and Lower bands provide the best trading BUY and SELL, entry points, the mid-line offers an excellent price reference point.