How to Use VWAP for Intraday Futures Trading
It’s 9:30 AM. Your VWAP-based strategy just triggered a trade on ES futures while you’re still having coffee. The market is moving fast, but your system...
VWAP futures trading is an essential topic for every trader looking to improve their futures trading. It’s 9:30 AM. Your VWAP-based strategy just triggered a trade on ES futures while you’re still having coffee. The market is moving fast, but your system is executing precisely where institutional volume is concentrated. This isn’t magic—it’s the power of volume-weighted average price applied correctly to futures trading. This article covers VWAP futures trading in detail for traders looking to improve their results. VWAP is the volume-weighted average price of a security over a specific period, calculated by multiplying price by volume at each price level and dividing by total volume. It represents the average price at which a security has traded, weighted by volume. In futures markets, VWAP serves as a critical benchmark for institutional activity and intraday momentum. Key fact: According to the Wikipedia entry on algorithmic trading, approximately 92% of Forex market transactions were executed by algorithms in 2019, highlighting the dominance of automated systems in modern trading.