Not necessarily, like everything in trading it depends on all the variables, the stock/time/price, etc..... but in general VWAP serves as an awesome pivot point for one because it is used by so many traders/algorithms, but for another reason because it represents the average price people are long/short at so when VWAP is holding on either side, you can add, but often times it just blows through it and then you know most traders are now under water on that stock for the day so you know moves are going to be more exaggerated. I could create an entire thread on VWAP, but im too lazy, but bottom line is most traders have it on their screen, it is literally the most important variable after volume/price, and the only thing i pay attention too besides volume and price, but for some reason IB hasnt been able to figure it out for a decade.
Last edited:
