VWAP Indicator
VWAP indicator – MT5 support and resistance indicator. The best intraday indicator for MT5. Free impulse indicator.
Description
The VWAP (Volume Weighted Average Price) indicator is a trading benchmark used by traders that gives the average price at which a security has traded throughout the day, based on both volume and price. This is important because it gives traders an idea of both the trend and the value of the security.
This VWAP V2 indicator is free and is a manual version of the advanced Easy VWAP indicator that automatically enters date and time properties. With EasyVWAP you can see 1 or more VWAP indicators on the map with one click on each line. The difference between VWAP V2 and Easy VWAP is that you must manually enter the date and time in the VWAP V2 properties to display the indicator.
So basically, trading above the VWAP is considered bullish and trading below is bearish. Conversely, price trading along the line is considered a flat market.
In addition, the indicator can also act as a dynamic support and resistance tool for BUY/SELL entries. Moreover, it is suitable for beginners, intermediate and advanced forex traders.
How To Trade With VWAP Indicator
The image above shows how the VWAP V2 indicator will look on your MT5 chart. It is recommended to be used in conjunction with price action/other technical trading indicators for greater effectiveness.
BUY/SELL Signals: First, wait until the price breaks the indicator line, which means a bullish move. Now wait for price to retest the line and then enter a BUY/LONG position after price also prints a bullish candle.
The above principle also applies to setting up and entering a SELL. A setup with a high probability is depicted when the price sharply discards the wick when returning to the indicator line.
Conclusion
The VWAP Indicator for MT5 is the perfect Forex trading tool for intraday traders. It gives more reliable signals when there is a lot of volume in the market. Finally, the indicator is free to download.