Let me put my teaching hat on for a moment.-
VWAP<-----
Ok it's a nice indicator but not a reliable one and it should always be used with other indicators.
The mistake Van made in using VWAP on COIN was that COIN had already spiked large and you never use VWAP after a spike. Only when a stk is treading water.
Generally, if the price is above the VWAP, it indicates that the buyers are in control and the trend is bullish. But after a super spike that is negated.
One of the main limitations of VWAP is that it is a lagging indicator, meaning that it reflects past data and does not predict future price movements. Therefore, traders should not rely solely on the VWAP to make trading decisions, but rather use it in conjunction with other technical tools, such as trend lines, moving averages, or oscillators. Another drawback of VWAP is that it can be affected by outliers, such as extreme price spikes or drops, which can distort the average price and make it less reliable. Therefore, traders should be cautious when using VWAP in volatile markets or during news events.<-----!
In most cases you can just use VOL! or better yet On balance Vol.
Use VWAP primarily to set up entry and exit points for swing trades.
VWAP<-----
Ok it's a nice indicator but not a reliable one and it should always be used with other indicators.
The mistake Van made in using VWAP on COIN was that COIN had already spiked large and you never use VWAP after a spike. Only when a stk is treading water.
Generally, if the price is above the VWAP, it indicates that the buyers are in control and the trend is bullish. But after a super spike that is negated.
One of the main limitations of VWAP is that it is a lagging indicator, meaning that it reflects past data and does not predict future price movements. Therefore, traders should not rely solely on the VWAP to make trading decisions, but rather use it in conjunction with other technical tools, such as trend lines, moving averages, or oscillators. Another drawback of VWAP is that it can be affected by outliers, such as extreme price spikes or drops, which can distort the average price and make it less reliable. Therefore, traders should be cautious when using VWAP in volatile markets or during news events.<-----!
In most cases you can just use VOL! or better yet On balance Vol.
Use VWAP primarily to set up entry and exit points for swing trades.
