Understanding the Negative VWAP Divergence Alert

This alert compares the price of the last print to the current VWAP for the day. This will notify you when the price moves an integer number of percentage points below the VWAP.

This will also tell you when the price crosses the VWAP. Initially every stock starts at the VWAP. If the price moves significantly in one direction, and then back, there will be an alert when the price crossed the VWAP.

This alert is popular because of algorithmic trading. One of the most important metrics for algorithmic traders is how far off the VWAP a stock is trading. Other traders use our alerts to predict how the algorithmic trading strategies will try to hide large order flow.

This alert will typically go off only once at each integer percent level. However, if a price moves one way, then back the other way, the alerts will notify you of the return trip. To limit the alerts even further, use the alert specific filters.

Default Settings

By default, the 'Negative VWAP Divergence' alert will appear when the price moves an integer number of percentage points below the VWAP.

Custom Settings

For 'Negative VWAP Divergence' alerts, you have the option to use an alert specific filter. This filter is located immediately to the right of the corresponding alert and is always optional. You can decide to leave it blank if you want to receive more alerts, or you can fill it in to restrict the number of alerts you receive. This filter allows you to specify the quality of the alert. When you set a higher number for this filter, you are telling the alerts server to display only alerts that meet a higher quality standard, resulting in fewer alerts being shown.

When setting an alert for 'Negative VWAP Divergence', the user can filter the alert by minimum percentage changed. This value is always displayed in the alert description. The server reports each integer value, and no others. It never does any rounding. The minimum value is different for different alerts.

Typically, each symbol will only report one of these alerts per day at each % level. However, after recovering from a bad print, or other major changes in the price, the server may repeat some alerts.

Description Column

The alert's description will report the percentage below VWAP a stock is trading.

Quality Column

The quality value on a scan using the 'Negative VWAP Divergence' alert will show the % it is trading below VWAP.