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Re: green rushe post# 108905

Friday, 04/04/2014 10:10:34 PM

Friday, April 04, 2014 10:10:34 PM

Post# of 137731
Ratios and value will be handled by the following formula:
Volume weighted average price over a period of time leading up to valuation. Complicated at best, just know that soon you will have way more money than you do today:)


VWAP is calculated by multiplying the volume at each price level
by the respective price and dividing by the total volume. The more
volume traded at a certain price level, the more impact that price
has on VWAP.
VWAP= ?(Pn*Vn) / ?(Vn)
where P = price traded;
V = volume traded;
n = number of trades
As an example, consider the following series of trades:
500 shares @ $10.00
300 shares @ $10.05
200 shares @ $10.10
The average price for these three trades is $10.05, however
the VWAP is $10.035 because more volume was executed at
the $10.00 level than at the $10.10 price. One of the keys to
a successful VWAP trade is anticipating market volume and
participating accordingly.