🎯 VWAP — The Fair Value Line That Smart Money Watches Closely!

Ever wondered where institutions consider “fair price”?

👉 VWAP tells you when price is cheap or expensive — in real time! 📊⚖️


Welcome to Episode 24 of:

"Learn Indicators Like a Pro" 🔍

Today’s focus: VWAP — The Smart Money Magnet



🧠 What Is VWAP?


VWAP = Volume Weighted Average Price

It calculates the average price of an asset weighted by volume throughout the day.


It's like a “true value line” that traders use to know:


  • If price is trading at a premium (above VWAP)


    Or a discount (below VWAP)





📉 Why It’s Powerful:


✅ Used by institutions & algorithms

✅ Reacts to both price and volume

✅ Resets daily → great for intraday trading



🔧 How to Use VWAP:


  1. As dynamic support/resistance:


    • Price above VWAP = bullish bias


    • Price below VWAP = bearish bias



  2. Mean reversion strategy:


    • If price stretches far from VWAP → expect a pullback


    • Buy below VWAP in uptrends, sell above VWAP in downtrends



  3. Entry filter:


    • Only buy if price is above VWAP + volume increasing


    • Sell/short if below VWAP + volume rising




⚠️ Pro Tips:


🚫 Don’t use VWAP alone — confirm with RSI, MACD, or candles

✅ Excellent for scalping and intraday setups

✅ Combine with Bollinger Bands or EMAs for advanced edge

💡 Perfect for spotting whale entry zones early in the day!



📌 Next Episode: EMA — The Secret of Trend Momentum & Reversal Signals 🔁⚡

Don’t miss it! You’ll discover why EMAs are used in 90% of profitable strategies 👀