#trading #TradingStrategies๐ผ๐ฐ
VWAP Trading (Volume Weighted Average Price)
Best For: Identifying institutional buying/selling levels
How It Works:
VWAP is a technical indicator that calculates the average price a crypto has traded at, based on both price and volume.
When price is above VWAP, it signals a bullish trend; when itโs below VWAP, itโs bearish.
Institutions often buy or sell around VWAP to avoid moving the market too much.
Trading Strategy:
โ Buy near VWAP on a bullish trend (support).
โ Sell near VWAP when price is below (resistance).