VWAP is my most favourite Indicator after Volume (if you consider that an indiactor).
Here's How you can use VWAP in your Intraday Trading -
Here's How you can use VWAP in your Intraday Trading -
1. Trailing Stop-loss:Β
VWAP moves all day, You can use this level as SL when you are long/short and trail the SL along wth VWAP.
Look how using VWAP as SL in GNFC you'd have capured whole fall.
VWAP moves all day, You can use this level as SL when you are long/short and trail the SL along wth VWAP.
Look how using VWAP as SL in GNFC you'd have capured whole fall.
2. Market sentiment:
If the current price of a stock is above its VWAP, the stock is bullish. Conversely, if the current price is below the VWAP, it can indicate bearishness.
Balkrishna was bullish coz of this.
If the current price of a stock is above its VWAP, the stock is bullish. Conversely, if the current price is below the VWAP, it can indicate bearishness.
Balkrishna was bullish coz of this.
3. Support and resistance:
VWAP can act as a key level of support or resistance.
look how Indus took support from VWAP line & went up.
VWAP can act as a key level of support or resistance.
look how Indus took support from VWAP line & went up.
4. Trading opportunities:
If the price of a Stock is trading at a significant premium or discount to its VWAP, it can indicate a potential buying or selling opportunity.
TCS above VWAP = Buying opportunity.
If the price of a Stock is trading at a significant premium or discount to its VWAP, it can indicate a potential buying or selling opportunity.
TCS above VWAP = Buying opportunity.
5. Determining momentum:
VWAP can be used as a momentum indicator.
If the Stockβs price is above its VWAP and the VWAP is trending up, it indicate that the stock is in an uptrend.
Apollo above VWAP & VWAP trending up = good momentum.
VWAP can be used as a momentum indicator.
If the Stockβs price is above its VWAP and the VWAP is trending up, it indicate that the stock is in an uptrend.
Apollo above VWAP & VWAP trending up = good momentum.
- Plz note that the VWAP is a lagging indicator, so it's better that you use it along with other studies like OI Data & Price Action.
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