RE: VWAP
With VWAP it is important not just to look a whether the current price is above or below it, but what the slope of the VWAP line is. The slope provide a good indicator of momentum. Remember VWAP is based on historical data and is backward looking. The VWAP can also be combined with moving averages to create trading signals when the two lines cross. Bollinger Bands are another indicator that can be combined with VWAP. When actual prices are trading outside of the bands it is an indicator that these trades are coming with light volume and the current price may revert towards the VWAP line.
The view and opinions of the author do not reflect the views of Moomoo Financial Inc. or any of its affiliates. The views and opinions of the author are provided for informational purposes only, do not constitute a recommendation of an investment strategy or to buy, sell, or hold any investment in any form, and are not research reports and should not be used to serve as the basis for any investment decision. All investments involve risk including the loss of principal and past performance does not guarantee future results.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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