New VWAP Indicator MT4

MT4 Trend TradingFree Download

The New VWAP Indicator MT4, also known as the Volume-Weighted Average Price, displays the average price of a currency pair considering the volume of trades. The VWAP works by comparing three distinct lines, so you can determine the market volume. Free download is available.

Sounds interesting? Let’s take a closer look at it.

New VWAP Indicator : Introduction

MT4 Indicator Overview

The download link of the New VWAP MT4 indicator is placed at the bottom of this post – once you’re done, your Metatrader 4 trading chart should look similar to the example below.

New VWAP Indicator Example Chart

The VWAP indicator consists of three lines, each representing daily, weekly, and monthly periods. These lines analyze the overall market volume and categorize it based on its significance.

The New VWAP indicator shares similarities with Moving Averages or Bollinger Bands in appearance. However, the key difference lies in VWAP’s emphasis on weighted volume. By calculating the average price based on the weighted volume, this indicator helps identify support and resistance levels, allowing you to determine optimal entry and exit points.

When the weekly and monthly lines intersect, the indicator generates signals for both long and short trading opportunities. While the indicator functions effectively across various timeframes, it is particularly reliable when used on an hourly chart to minimize false signals.

New VWAP Indicator Explained

The New VWAP indicator places emphasis on weighted volume in its calculation of average price. This approach enables it to effectively identify support and resistance levels, which serve as valuable indicators for trade entry and exit points.

The indicator generates signals when the weekly and monthly lines cross paths. These lines are color-coded, with the weekly line represented in red and the monthly line in green.

A bullish signal is indicated when the weekly line surpasses the monthly line. Conversely, a bearish signal is indicated when the weekly line falls below the monthly line.

The daily line, denoted by yellow, serves as a neutral reference point and can be used for both bullish and bearish trends. This line adjusts its movement according to the trend’s direction. During an uptrend, the yellow line shows higher movement, while in a downtrend, it exhibits lower movement.

VWAP: Buy Conditions

Follow these steps for a long trade:

Look for the red line to cross above the green line.
Wait for the price to confirm the continuation of its course.
Enter the trade either at the crossover point or after it.
Set a stop-loss order near the low of the buying point to manage risk.
Exit the trade when there is a change in the trend.

New VWAP Indicator Buy Signal

VWAP: Sell Conditions

Follow these steps for a short trade:

Look for the red line to cross below the green line.
Wait for the price to confirm the continuation of its course.
Enter the trade either at the crossover point or after it.
Set a stop-loss order near the high of the selling point to manage risk.
Exit the trade when there is a change in the trend.

New VWAP Indicator Sell Signal

MT4 Indicators: Download and Installation Instructions

Download the New VWAP Indicator MT4.rar archive at the bottom of this post, unpack it, then copy and paste the new-vwap.ex4 or new-vwap.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Indicator Summary

The MT4 New VWAP Indicator indicator for MetaTrader is a powerful tool that enables precise identification of entry and exit points by prioritizing weighted volume. To enhance signal confirmation, you can combine this indicator with other technical analysis tools such as the RSI or Stochastics. Through a strategic combination of indicators, you can effectively leverage the New VWAP indicator’s strengths and expand your understanding of the market, ultimately making more informed trading choices. The indicator is available for free download and can be effortlessly installed.