Historically volume combined with momentum trends (e.g., Moving Averages) provide an ideal metric for defining the overall strength of an assets price trend. BirbicatorPRO integrates a 3-stage VWAP system to provide another indicator for defining how price trends are adapting over time.
The BirbWAP VWAP system is created from key pivots associated with components of the BirbicatorPRO system. As a result, a 1) High, 2) Low, and a 3) Mean VWAP trend line can be presented to the user to analyze how price is compressing against each of the three VWAP trends.
In the example above, we see the "High" and "Low" BirbWAP trends as the solid lines. The "Mean" BirbWAP trend is always presented as the "dotted" line. Depending on the status of the trend, the VWAP lines may change which is "closest" to price. As all VWAPs must be "anchored" to specific location, BirbicatorPRO utilizes the built-in breaker high, low, and mean Auto-Price Levels as the key metric for defining when to anchor new key changes in price to each VWAP.
VWAPs represent a statistical mean that incorporates a volume-weighted moving average generated as a result of BirbicatorPRO's other components. Regardless, price rising away/toward from the VWAPs will denote a "bullish" bias of price action, while falling away/toward a VWAP will denote a "bearish" bias of price action.
Much like standard moving averages, VWAPs provide context for current price history against a historical volume weighted average price. Current prices above the historical volume weighted average price tend to indicate "bullish" price action toward the upside, especially if the difference between the VWAP and the close price of the current candle is increasing. Current prices below the historical volume weighted average price tend to indicate "bearish" price action toward the downside, especially if the difference between the VWAP and the close price of the current candle is decreasing.