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TA Challenge: VWAP, the "golden indicator" for intraday trading
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TA Challenge: Put Volume-Weighted Average Price (VWAP) into your day trading toolbox

Hey, mooers!
After learning about the basics of Volume-Weighted Average Price (VWAP), now it's time to find out how it can assist traders in real cases.
Support/Resistance
VWAP As Resistance
VWAP As Resistance
 VWAP As Support
VWAP As Support
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy. Past performance is not indicative of future results.
Intraday traders favor the VWAP indicator because they usually find the support or resistance level around that line. Some people think this may be a self-fulfilling prophecy. After all, many traders and algorithms are buying and selling around the VWAP line.
Nevertheless, if you combine VWAP with simple price action, VWAP trading strategies can help you find dynamic support and resistance levels in the market. When a major market trend arises, there is a higher probability that VWAP lines will release dynamic support and resistance signals.
Entry and Exit Levels
TA Challenge: Put Volume-Weighted Average Price (VWAP) into your day trading toolbox
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy. Past performance is not indicative of future results.
For investors with a more passive, long-term style of investing, VWAP can serve as a reference for market prospects. Some traders may use a price crossing the VWAP line as a signal to enter a trade. If the price breaks above and goes above VWAP, they may enter a long position. Conversely, if the price breaks below VWAP, they may enter a short position. The chart above is an example of an investor who wants to go short using VWAP to make entry decisions.
Pullback Stop
TA Challenge: Put Volume-Weighted Average Price (VWAP) into your day trading toolbox
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy. Past performance is not indicative of future results.
We have introduced how VWAP indicates support/resistance levels. Experienced traders do not always take immediate action when stocks break support levels. However, if the stock begins to roll over and breaks the VWAP along with the most recent low—the odds are you have a problem. And what if it breaks VWAP and forms a resistance level near VWAP? This may be a serious signal that prices will continue to move lower for the period ahead.
VWAP + other indicators
There are many ways to trade with VWAP. Still, it is usually a good idea to complement using any single trading indicator with other indicators, such as momentum indicators like MACD or RSI.
TA Challenge: Put Volume-Weighted Average Price (VWAP) into your day trading toolbox
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy. Past performance is not indicative of future results.
Here is an example of using VWAP with EMA10 in intraday trading. The EMA is more sensitive to price movement and provides more timely results than the MA. For this reason, the short-term EMA is generally effective for intraday trading. Utilizing VWAP and EMA10 together is straightforward, as VWAP gauges the strength of the stock price, and EMA reveals the movement of the trend. Take a look at the example below. You can see that when EMA10 breaks above VWAP, the stock price moves up quickly. When EMA10 falls below VWAP, the stock price starts to fall.
Tap the following post to learn the basics about VWAP!
>> Get to know Volume-Weighted Average Price (VWAP) in one chart
Let's discuss
What other indicators can be used with VWAP to help strengthen the predictions? We are sure you can think of more! Share your thoughts in the discussion, and you'll have a chance to win a $5 USD stock cash coupon!
Event time: Now – April 6, 08:59 AM EDT/08:59 PM SGT/11:59 PM AEDT
Disclaimer:
This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.
This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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