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Weights price by volume over 50 periods, exposing the longer-term average cost basis and volume-adjusted equilibrium price.
VWAP 50 looks at volume-weighted price over a longer 50-period window, giving a slower-moving fair value.
VWAP 50 looks at volume-weighted price over a longer 50-period window, giving a slower-moving fair value.
The calculation:
VWAP = Cumulative (Typical Price × Volume) / Cumulative Volume Typical Price = (High + Low + Close) / 3
Why 50-period VWAP:
- Longer-term benchmark: Shows fair value over extended period
- Less noise: Smoother than shorter-term VWAP
- Trend perspective: Provides medium-term directional bias
- Swing trading reference: Useful for multi-day position management
Trading applications:
- Trend identification: Price consistently above/below indicates trend direction
- Major support/resistance: Acts as significant reference level
- Position assessment: Compare entry price to VWAP 50 for position quality
- Mean reversion target: Extreme deviations may revert toward VWAP
Comparison to other VWAPs:
- Slower than VWAP 20: Less responsive to recent price/volume changes
- More stable: Better for medium-term trend assessment
- Institutional relevance: Longer timeframes often align with institutional horizons
The 50-period VWAP serves as a significant benchmark level. Large deviations from this level often attract mean reversion or indicate strong trending conditions.