VWAP Indicator MT5

MT5 Market Levels TradingFree Download

The VWAP Indicator MT5 indicator calculates the average price of a currency pair by taking into account the trading volume and is available to free download. It’s an indicator used by traders to determine market volume and is represented by three lines on a chart. The VWAP acronym stands for Volume Weighted Average Price.

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

Introducing the VWAP Indicator

MT5 Indicator Overview

The download link of the VWAP MT5 indicator is placed at the bottom of this post. Once you’re done, your Metatrader 5 trading chart should look similar to the example below.

VWAP Indicator Example Chart

The VWAP indicator comprises three lines, representing daily, weekly, and monthly periods. These lines analyze the market volume and separate it based on its weight. While the VWAP looks similar to Moving Averages or Bollinger Bands, it focuses more on the weighted volume.

By calculating the average price at the weighted volume, the VWAP helps identify support and resistance levels and find entry and exit points. The indicator generates signals when the weekly and monthly lines cross over, providing long and short opportunities. Although the VWAP works well on any timeframe, it’s recommended to use it on an hourly chart to avoid false signals.

VWAP Indicator Buy Trade Example

VWAP Indicator Sell Trade Example

How To Trade With The VWAP Indicator?

The VWAP indicator prioritizes the weighted volume by calculating the average price. This calculation helps to identify levels of support and resistance, which in turn help determine when to enter or exit a trade. The VWAP also generates signals when the weekly and monthly lines cross over. The weekly line is represented by the color red, while the monthly line is green.

When the weekly line crosses above the monthly line, it signals a bullish trend, while a bearish trend is signaled when the weekly line crosses below the monthly line. The daily line, represented by the color yellow, is a neutral line that can be used for both bullish and bearish trends. This line moves in the direction of the trend, making higher moves during an uptrend and lower moves during a downtrend.

Settings

These are available settings to customize in the input tab window:

VWAP Indicator Settings

How to set up that MT5 indicator in your trading platform?

Installation Guide

Download the vwap-indicator-mt5.rar archive at the bottom of this post, unpack it, then copy and paste the vwap-indicator.ex5 or vwap-indicator.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.

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

File > Open Data Folder > MQL5 > Indicators (paste here).

Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Conclusion

The MT5 VWAP Indicator is a powerful tool for traders looking to identify exact entry and exit points in the forex market. By emphasizing the weighted volume through the average price, the VWAP can help you identify important market levels. To further confirm the signals generated by the VWAP indicator, traders can use it in conjunction with other technical analysis tools, such as the Relative Strength Index (RSI) or Stochastic oscillator. Combining these tools can provide a more comprehensive picture of market trends and help traders make more informed decisions. That forex M5 indicator is free to download, so go ahead and give it a try.