Double VWAP (Moving VWAP Crossover)

 

#intraday #volume #crossover 

Two volume-weighted average lines of different lengths, used like a double moving average but with volume built in. The fast line tracks recent volume-weighted price, the slow line the bigger picture. Crossovers signal trend changes that are backed by actual traded volume, not just price. 

Default period: 10, 20 (fast MVWAP, slow MVWAP) 

Fast line above slow line indicates volume-backed uptrend. Fast line below slow line indicates volume-backed downtrend. 

Useful readings: 

Fast crosses above slow: Volume-weighted trend turned up 

Fast crosses below slow: Volume-weighted trend turned down 

Gap widening: Trend supported by growing volume interest 

Gap narrowing: Volume support fading, cross may come 

Price above both lines: Cleanest bullish zone 

Crossovers here lag simple MA crossovers slightly but give fewer false signals in high-volume stocks 

Objective rules: 

Bullish: Fast MVWAP crosses above slow MVWAP. 

Bearish: Fast MVWAP crosses below slow MVWAP. 

Entry filter: Take the crossover only if price closes on the same side of both lines 

Long exit: Price closes below the fast MVWAP for 2 bars 

Chop filter: Skip signal if the last cross happened within 10 bars 

What makes it unique: 

It rebuilds the classic crossover system with volume-weighted lines, so crosses need real money behind them. Price-only crossovers cannot claim that

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder on RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. It is calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin-Ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.