: The indicator 90% of traders ignore (and should use every day) 📊⚠️
Text:
Today we’re going to talk about something that isn’t RSI, isn’t MACD, and isn’t support and resistance.
We’re talking about VOLUME WEIGHTED AVERAGE PRICE (VWAP). 📉
What is it? Basically, it’s the average price at which an asset has been traded, weighted by the volume of each trade. It’s the institutional favorite indicator to know whether they’re buying “expensive” or “cheap” versus the day’s average.
Why is it so useful for us?
✅ It tells you whether the current price is above or below the day’s “fair value.”
✅ When price is far above the VWAP, there may be temporary overbought conditions.
✅ When it’s far below, there are often good buy opportunities with a solid risk/reward ratio.
Practical rule I use:
👉 If price is above the VWAP and the volume supports it = a healthy uptrend.
👉 If price is below the VWAP and volume drops = a weakness signal.
Heads up, it’s not magic: Like any indicator, it works best with context. But if you add it to your Trading Toolkit, you’ll start seeing the market in a different way. 🔍
Now I want to know from you: Have you already been using VWAP? Or are you lifelong RSI/MACD team? Tell me in the comments 👇
If this post added value to you, hit 🔥 and save it to review later.
#EducacionCrypto #BinaceSquare #AprenderTrading #VWAP #bitcoin .$NVDAB
Text:
Today we’re going to talk about something that isn’t RSI, isn’t MACD, and isn’t support and resistance.
We’re talking about VOLUME WEIGHTED AVERAGE PRICE (VWAP). 📉
What is it? Basically, it’s the average price at which an asset has been traded, weighted by the volume of each trade. It’s the institutional favorite indicator to know whether they’re buying “expensive” or “cheap” versus the day’s average.
Why is it so useful for us?
✅ It tells you whether the current price is above or below the day’s “fair value.”
✅ When price is far above the VWAP, there may be temporary overbought conditions.
✅ When it’s far below, there are often good buy opportunities with a solid risk/reward ratio.
Practical rule I use:
👉 If price is above the VWAP and the volume supports it = a healthy uptrend.
👉 If price is below the VWAP and volume drops = a weakness signal.
Heads up, it’s not magic: Like any indicator, it works best with context. But if you add it to your Trading Toolkit, you’ll start seeing the market in a different way. 🔍
Now I want to know from you: Have you already been using VWAP? Or are you lifelong RSI/MACD team? Tell me in the comments 👇
If this post added value to you, hit 🔥 and save it to review later.
#EducacionCrypto #BinaceSquare #AprenderTrading #VWAP #bitcoin .$NVDAB