hard · Volume Profile Analysis

A trader is compute the VWAP for a list of three trades: Trade A (1.0850 for 100 lots), Trade B (1.0860 for 300 lots), and Trade C (1.0855 for 200 lots).

What is the VWAP, and how does it compare to the simple arithmetic mean of the prices?

  1. VWAP is 1.0860; it is equal to the Point of Control (POC).
  2. VWAP is 1.08533; it is lower than the arithmetic mean because the first trade was at the lowest price.
  3. VWAP is 1.0855; it is identical to the arithmetic mean because the trades were symmetrical.
  4. VWAP is 1.08567; it is higher than the arithmetic mean (1.0855) because volume was heaviest at the highest price.

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