LIBRARIES

MVWAPBANDS WITHPIVOTS LIBRARY Planetary2Library

Introduction:
TheVWAPhasbeenusedbymanytradersthroughouttheyearsasabenchmarkofprice.This allowsthemtoknowwhenaninvestmentisfavorableorunfavorable.Itisalsoameansto determinethemarketsaveragetradingpriceduringagivenperiodbytakingintoaccountboth thepriceandthevolumeornumberofsharesbeingtradedduringthesameperiod.

Benefits:
TherearemanywaysoflookingattheVWAP,however,themostwidelynotedistouseitasa benchmarkforpassiveinvestments.Manypensionfundsandsomemutualfundslineupwith thispassivethinking.TheinvestorexecutestradesbasedontheVWAPtoensuretheyareinline withthepriceandvolumeofthemarket.VWAPcanalsomeasuretheefficiencyofaninvestors trades.Investorscanseehoweffectivetheirorderexecutionshavebeenovertimecompared totheVWAPprice.

LargeinstitutionsusetheVWAPasawaytofindpointsofliquidity.SincetheVWAPmeasures thepricelevelsweightedbyvolume,itcanhelpinstitutionsknowwhentoenterandexitlarge positionswithoutdisturbingthemarkets.Asstatedaboveifthepriceofthemarketisbelow theVWAPitcouldbeagoodtimetostartbuyinguppositionsinthemarket.Conversely,ifthe marketisabovetheVWAPtheymaylooktosellofftheirpositionsforaprofit.

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IncludedinthisLibrary:

MVWAPTemplates
MVWAPDailywithPivots MVWAPWeeklywithPivots MVWAPMonthlywithPivots MVWAPQuarterlywithPivots MVWAPYearlywithPivots

MVWAPPage
MVWAPtimeframes

Indicators
MVWAP MVWAPLower1 MVWAPLower2 MVWAPLower3 MVWAPUpper1 MVWAPUpper2 MVWAPUpper3 MVWAPUpperPivot MVWAPMiddlePivot MVWAPLowerPivot MVWAPweekly MVWAPweeklyLower1 MVWAPweeklyLower2 MVWAPweeklyLower3 MVWAPweeklyUpper1 MVWAPweeklyUpper2 MVWAPweeklyUpper3 MVWAPweeklyUpperPivot MVWAPweeklyMiddlePivot MVWAPweeklyLowerPivot MVWAPmonthly MVWAPmonthlyLower1 MVWAPmonthlyLower2 MVWAPmonthlyLower3 MVWAPmonthlyUpper1 MVWAPmonthlyUpper2 MVWAPmonthlyUpper3 MVWAPmonthlyUpperPivot MVWAPmonthlyMiddlePivot MVWAPmonthlyLowerPivot MVWAPquarterly MVWAPquarterlyLower1 MVWAPquarterlyLower2 MVWAPquarterlyLower3 MVWAPquarterlyUpper1 MVWAPquarterlyUpper2 MVWAPquarterlyUpper3 MVWAPquarterlyUpperPivot MVWAPquarterlyMiddlePivot MVWAPquarterlyLowerPivot MVWAPyearly MVWAPyearlyLower1 MVWAPyearlyLower2 MVWAPyearlyLower3 MVWAPyearlyUpper1 MVWAPyearlyUpper2 MVWAPyearlyUpper3 MVWAPyearlyUpperPivot MVWAPyearlyMiddlePivot MVWAPyearlyLowerPivot

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MVWAPwithStandardDeviations
Investorscanapplyastandard deviationoftheMVWAPtothe chartstoseehowfarwayfrom theaveragepricethemarkethas moved.Oftenthreestandard deviationsawayfromtheaverage priceshowsoverboughtandover soldconditionsinthemarket.Or inotherwords,themarketisover valuedorundervalued.Each standarddeviationisplottedfrom theMVWAP,therefore,thechart willhavethreelinesaboveand threelinesbelowtheaverage price,oneforeverystandard deviation.Thedeeperthemarketgoesintothestandarddeviationsthemoreextremelythe marketisunderorovervalued.

IntradayCharts
Manyinvestorsfindithelpfulto usetheMVWAPduringintraday timeperiods.Thisallowsthe investortoseethevolumeand averagepriceduringtheshorter timeperiods.Thedrawbackwith lookingatintradaychartswiththe MVWAPisthatthereisalaginthe indicator.Alargerthetimeperiod givesalargerlagtime.Many suggestusingtickbarsforlooking attheMVWAPinthecalculation. Thisgivesaclearerpicturetothe overallvolumeandhelpsshorten thelagwiththeindicator. InvestorscancomparethecurrentpriceswiththeMVWAPtodetermineapossibleintraday trend.IfthepricesfallbelowtheMVWAPthenthemarketistradingatalowervalueforthat giventimeperiod.IfthepricesareabovetheMVWAPthenthemarketistradingatahigher valueforthatgiventimeperiod.Itcouldalsomeanthatthevolumeislowerorhigherforthat giventimeperioddependinghowfarintothestandarddeviationbandsthepricemoves.Some analysisseeintradayMVWAPasnorealvalue,however,iftheinvestorusesatwentyfourhour chartthedatatendstobemoreaccuratethaniftheinvestorusedthemarketopenandclose forthecalculation.

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HiddenSupportandResistance
Thestandarddeviationscanoften actasahiddensupportor resistancewhichcanbeuseful duringintradaytimeframes. MuchlikeJohnBollinger'sideaof sellingatthetopBollingerband andbuyingatthelowerBollinger bandinrangeboundmarkets.The samecanbeusedwiththe MVWAPwiththestandard deviations.

SupportandResistance
Anotherconceptthathasbeen helpfultoinvestorshasbeen addingpivotsorsupportand resistancelinestothechart. Investorsshouldwatchforthe markettotestanareaofsupport orresistancewhilereachinginto thethirdstandarddeviation.This showsthatthemarketistesting outapreviouslevelthatitmay notbeabletobreakbecausethe marketisoverorundervalued.It givesstrengthtothemarketto pushthecurrentpricebacktothe MVWAPandoftenpastit.Entry pointscanbetrickyattimesandtherearemanywaystoenterintooneofthesetrades. Investorsshoulddevelopaplanofattackbeforeblindlyenteringthemarketwiththissituation.

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TradeNavigator
InTradeNavigatorunderthePagesdropdownmenuthereisacustompagenamed,MVWAP TimeFramessetupforourusers.Thisincludesfivechartswhichincludeanintraday,daily, weekly,monthlyandquarterlywiththeappropriateVWAPsettings. Tochangethesettingsrightclickonyourchartandselectthetopoption,EDITChartSettings. UndertheLinkedInputsyouwillseeintherightcolumn:&#days,&#weeks,&#months, &#quarter,&#year. Thesettingswouldbeas follows: &#days1to5 &#weeks1to4 &#months1to4 &#quarter1to2 Yearlyonlycalculatesfor1 year

TherearealsoTemplatesthathavebeencreatedforourusersaswell.UndertheTemplate dropdownmenutherearefivedifferenttemplatesnamed,MVWAPDailywithPivots,MVWAP WeeklywithPivots,MVWAPMonthlywithPivots,MVWAPQuarterlywithPivotsandMVWAP YearlywithPivots.AllofthetemplatescomewithPivotPointsbasedofftheoftheMVWAP settingstohelpinvestorsmakeinformeddecisions.

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