Indicator Teaching: How to Use VWAP to Identify Support and Resistance
VWAP (Volume Weighted Average Price), calculated from the starting breakout point, is the average cost of the bulls over this move.
If the price hasn’t been pushed through (smashed) and pullbacks don’t break it, it means the bulls are still pushing. If it gets pushed through and the rebound can’t hold, then support turns into resistance.
No matter what indicator you use, trading is about finding support and resistance: short at resistance, and go long at support.
For practical teaching, here’s an example of finding resistance and shorting on the 15-minute gold timeframe.
VWAP is a living fit that you need to practice a lot.
VWAP (Volume Weighted Average Price), calculated from the starting breakout point, is the average cost of the bulls over this move.
If the price hasn’t been pushed through (smashed) and pullbacks don’t break it, it means the bulls are still pushing. If it gets pushed through and the rebound can’t hold, then support turns into resistance.
No matter what indicator you use, trading is about finding support and resistance: short at resistance, and go long at support.
For practical teaching, here’s an example of finding resistance and shorting on the 15-minute gold timeframe.
VWAP is a living fit that you need to practice a lot.