VWAP for Swing Trading: Using Volume Profile
VWAP is the Volume Weighted Average Price, a technical indicator that calculates the average price of a security weighted by its trading volume througho...
Key fact: VWAP with Heikin Ashi charts delivers a profit expectancy of 0.83 and a reward-to-risk ratio of 3.03, while OHLC charts barely break even with a profit expectancy of 0.15 according to 13,681 tested trades. Key fact: Institutional traders use VWAP as a benchmark to execute large orders without moving the market, making it a critical level to monitor for swing traders. Key fact: VWAP helps distinguish genuine momentum from market noise, a critical skill for swing traders navigating volatile markets. VWAP is the Volume Weighted Average Price, a technical indicator that calculates the average price of a security weighted by its trading volume throughout the day. Unlike simple moving averages, VWAP incorporates both price and volume data, providing a more accurate reflection of the market's true average price. Institutional Trading is the practice of large financial institutions executing trades that can significantly impact market prices. These institutions rely heavily on VWAP as a benchmark to assess trade execution quality, making it a critical level to monitor for swing traders.