Chart of the Day - Friday, June 21st, 2019

Today's chart of the day was shared on Twitter by Brian Shannon (@alphatrends). It's a 65 min candlestick chart of $LYFT since its IPO with two volume-weighted average price (VWAP) indicators, anchored from two different points in time. The VWAP is a fascinating indicator because it combines price, volume and time. It's essentially exactly what it sounds like, a simple moving average that has been weighted by volume. It serves as a good guide for the average price that the stock was traded at and can help you identify levels that are of interest to buyers and sellers. The blue VWAP is anchored from the IPO date, and the green VWAP is anchored from the all-time low. As you can see, these two VWAPs have acted as support and resistance several times. Brian anchors the VWAPs to important dates for the stock such as an IPO day, earnings announcement, absolute low, or any important day for the stock where buyers and sellers were forced to make decisions.