{"product_id":"stcov262mito","title":"Stocks \u0026 Commodities V. 26:9 (24-33): The MIDAS Touch, Part 1 by Andrew Coles, PhD","description":"The MIDAS Touch, Part 1 by Andrew Coles, PhD\u003cbr\u003e\u003cbr\u003eThe volume-weighted average price can be applied to\ndaytrading and short-term swing trading. Heres how.\u003cbr\u003e\u003cbr\u003eIN a Technical Analysis of STOCKS \u0026amp; COMMODITIES\narticle published in May 2001, George\nReyna drew attention to how a certain type of\nvolume-weighted average price (VWAP) calculation\ncan be a powerful predictor of support and resistance associated with major reversals off the daily\ncharts. This is a technique that would be of interest to the\nposition trader.\u003cbr\u003e\u003cbr\u003eThe ingenuity behind this unique application of the VWAP\nprinciple can only be appreciated in the context of standard\nVWAP calculations, which have been extensively applied in\nthe trading industry for many years. A standard VWAP calculation\nrepresents the total value of shares traded in a particular\nstock on a given day divided by the total volume of shares\ntraded in that stock on that same day. This standard calculation\nis thus a method of pricing transactions and is typically\nused as a benchmark to measure the efficiency of institutional\ntrading or the performance of traders themselves.\u003cbr\u003e\u003cbr\u003eAs an example, in the mutual and pension funds industry\nit is used as a trading benchmark: the point of using a VWAP\ntrading target is to ensure that the trader executing the order does so in line with the market volume. This way, transaction\ncosts are reduced by minimizing market impact.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134088999281,"sku":"\\V26\\C09\\173COLE.PDF","price":3.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_98d837b3-5c71-4b1c-8b42-4fdd0e108725.jpg?v=1739665705","url":"https:\/\/shop.traders.com\/products\/stcov262mito","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}