Want to trade smarter? The Volume Weighted Average Price (VWAP) is a must-have tool for Forex traders. Our new, free MT5 VWAP Indicator for MetaTrader 5 makes it easy to spot trends, find entry points, and manage trades. In this guide, you’ll learn what VWAP is, its formula, why traders love it, how to install it, and how to tweak its settings. Ready to level up your trading? Let’s get started.
What Is VWAP?
VWAP stands for Volume Weighted Average Price. It’s a technical indicator that shows the average price of a currency pair, weighted by trading volume, over a specific period.
Unlike a simple moving average, VWAP factors in volume, giving you a more accurate view of market activity. It appears as a line on your MT5 chart, helping you gauge the “fair” price of an asset.
VWAP resets daily, making it ideal for intraday trading. It’s widely used in Forex, stocks, and other markets. With our MT5 VWAP Indicator, you can apply it effortlessly to your charts.
VWAP is available for MetaTrader 5 and is FREE to download.
VWAP Formula
The VWAP formula is simple but powerful. It multiplies the price of each trade by its volume, sums these values, then divides by the total volume. Here’s how it looks:
VWAP = Σ (Price × Volume) / Σ Volume
- Price: Typically the average of high, low, and close prices for a period (e.g., a 5-minute candle), or the close price.
- Volume: The number of units traded in that period, in the case of Metatrader, the count of the ticks (price changes).
- Σ: Sum over the chosen time frame (e.g., one trading day).
Don’t worry about manual calculations. Our MT5 VWAP Indicator does the math for you, plotting the VWAP line in real-time.
VWAP Indicator for MT5
The VWAP indicator for MT5 is a simple indicator that takes care of the calculations and shows the volume weighted moving average directly on chart.
While it looks very similar to a moving average, VWAP also considers the tick volume of the candles.
You can download the MT5 VWAP indicator for FREE here or on its page
What Is VWAP Used For?
VWAP is a versatile tool for Forex trading. You can use it to:
- Identify Trends: If the price is above VWAP, the market is bullish. Below VWAP, it’s bearish.
- Find Entry/Exit Points: Prices below VWAP may signal a buying opportunity, while prices above suggest selling.
- Spot Support/Resistance: VWAP often acts as a dynamic support or resistance level.
- Gauge Liquidity: VWAP shows where high-volume trading occurs, helping you assess market strength.
It’s especially useful for intraday traders, but swing traders can apply it on higher time frames too. Pair it with tools like RSI or Bollinger Bands for better signals.
Why Traders Love VWAP
You’re always looking for an edge, and VWAP delivers. Here’s why traders swear by it:
- Accuracy: By factoring in volume, VWAP reflects true market sentiment, unlike price-only indicators.
- Simplicity: One line on your chart gives you instant insights, no clutter.
- Versatility: Works on any currency pair, time frame, or trading style.
- Institutional Use: Big players like hedge funds use VWAP, so you’re aligning with smart money.
Our free MT5 VWAP Indicator makes it easy to tap into these benefits, saving you time and boosting your confidence.
How Does MT5 VWAP Work?
Once you download and install the VWAP Indicator for MT5 you can set the period of the average and the indicator takes care of everything else.
You can select options related to the line styling.
The indicator will update the value every price change
The Candlestick Timer for MT5 can be used in for:
- Forex Pairs
- Indices
- Stocks
- Commodities
- Everything
MT5 VWAP Parameters
The indicator includes some really useful parameters to make it suitable to most traders.
Traders can set their preferred line styling and average period.
The period allows to consider more or less candles depending on your preference.
VWAP Installation on MT5
To install the Indicator:
- Download the indicator file
- Open Metatrader
- In Metatrader go in File > Open Data Folder
- Open the MQL5 folder in MT5
- Copy the indicator file in the Indicators Folder
- Restart Metatrader, or right click the folder containing the tool in Metatrader and select “Refresh”
- Drag the tool into the chart where you want to load it
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