28 August 2017
Monthly Notification, Saxo Bank
Two new indicators are ow available in the Chart in the SaxoTraderGO platform:Volume Weighted Average Price (VWAP)Volume Weighted Average Price (VWAP) ...
Two new indicators are ow available in the Chart in the SaxoTraderGO platform:
Volume Weighted Average Price (VWAP)
Volume Weighted Average Price (VWAP) is a technical indicator used to measure the average price on an instrument (typically a stock) against the traded volume over a particular time frame.
VWAP is a chart overlay similar to a moving average. VWAP is mostly used on intraday time periods (typically 5 minutes and 1 hour) to determine the general direction of a price move or trend. VWAP only works with Exchange traded instruments where there is an official traded price with volume i.e. Equities and Futures.
Instead of placing a single large order in the market, active traders often use VWAP to trade large volumes in line with the general volume and price of the intraday market in an effort not influence the general market price too much. Skilled VWAP users can often buy a large portion of their shares below the VWAP and sell above.
The Oscillator (OSC) indicator can be used as a trend indicator. It charts the relationship between two moving averages (typically 28-day and 14-day averages).¨
- The Oscillator line crosses and moves above the zero line (when there is no difference between the fast and slow MAs)
- Strong positive divergence (when the price is trending downwards but the Oscillator is trending upwards - this can be interpreted as bullish, suggesting a that recent down trend may be nearly over)
- The Oscillator line crosses and moves below the zero line (when there is no difference between the fast and slow MAs)
- Strong negative divergence (when the price is trending upwards, but the Oscillator is trending downwards - this may be interpreted as bearish, suggesting that recent up trend will not continue)
Signals are more reliant on the direction of the underlying long-term trend -- confirmation of signals using other indicators is advised.
Improvement to % Comparative chart
We have improved our % Comparative chart where you can now use one of the instruments as baseline.
When comparing 2 instruments in Comparative mode, select Use as Baseline from the menu for the instrument - the instrument will be set as the reference (zero line) and percentage changes for the other instrument calculated relative to it.