Hi,
what are the VWAP paramters used on Kite charts ?
what is the input price ?
is it close price or (high + low + close)/3
VWAP (Volume Weighted Average Price) is average price of all the trades happened across different prices throughout the day in that scrip.
Formula is as follows: VWAP = (Price * Shares Traded / Total Shares Traded).
@ShubhS9
Nope!
What you are reciting here is theoraical formula & is not used in charts.
Charts uses typical price ( (high + low + close)/3) as input and candle volume to calculate approx values. Hence changes with TF
OP, hope you get an answer as there doesn’t seem to be any official documentation on indicators & their implementation on the Kite platform. When I asked in another thread if there was a link that would explain how indicators are implemented in Kite, I got a response to the effect that the info is a simple Google search away! All the best.
i did got the answer, and the vwap i calculated is same as what is plotted on kite charts.
the mistake i did was, for vwap, i was using price/volume data from previous day as well, once i fixed it, the values started working fine.
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VWAP is one of the best technical indicators because it takes both price & volume. It assigns more weight to price points with high volume. This allows you to understand price points of interest, gauge relative strength, identify prime entries/exits and how to trade using VWAP indicator.
The formula is as follows
VWAP= ∑Price * Volume / ∑Volume