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<p id="isPasted">To perform averaging weighted by volume, you need to calculate the typical price for each period (e.g., each candle on a chart), multiply that price by the corresponding volume, and then divide the sum of these products by the total volume. This method is often used to calculate the Volume Weighted Average Price (VWAP), a common trading indicator. </p><p>1. Calculate Typical Price:</p><p>For each period (e.g., each candlestick on a chart), calculate the typical price (TP) by averaging the high, low, and closing prices: TP = (High + Low + Close) / 3.</p><p>2. Multiply by Volume:</p><p>Multiply the typical …</p>
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<p id="isPasted">By adding the VWAP indicator to a streaming chart, the calculation will be made automatically. However, to calculate the VWAP yourself, follow the steps below.</p><p>Assume a five-minute chart. The calculation is the same regardless of what intraday time frame is used.</p><p>Find the average price the stock traded at over the first five-minute period of the day. To do this, add the high, low, and close, then divide by three. Multiply this by the volume for that period. Record the result in a spreadsheet, under column PV (price, volume).</p><p>Divide PV by the volume for that period. This will …</p>
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