Author: Inna Golovacheva, your guide in the world where the price crawls up.
What is TWAP and why is it consuming you?
TWAP (Time-Weighted Average Price) is a bot that breaks one large trade into hundreds of small ones and distributes them over time to avoid moving the market. Imagine: someone wants to invest $50 million in BTC but doesn’t want to pump the price like the uncle with the market order.
TWAP makes no noise, doesn’t expose itself, just constantly drips into the order book like a Chinese water torture of liquidity.
What does TWAP look like on the chart?
🐢 The price rises slowly and steadily, as if "by itself."
📉 Pullbacks are minimal and bought back instantly.
🔁 Volumes are monotonous, as if a robot is pressing the "Buy" button every second. You watch and think: "Maybe I shouldn’t enter yet? What if there’s a dump?" But TWAP is already inside. It’s already gathering. You’re just observing.
💼 Who launches TWAP? Institutions. Smart whales. Funds that don’t need candles in the news.
TWAP is a way to enter unnoticed, but very confidently. It's like a tank entering a city, but on an electric motor and without noise.
⚠️ Why is TWAP dangerous for you?
You don’t see the pump - you don’t believe in the trend. You are waiting for volume, but there is none. You enter late and get a wick in your face because the bot has already bought everything and left, and you’re like: "What was that?" That was the TWAP shredder.
🛡 How to recognize it and not mess up?
1. Watch for constant volumes. Even volume over an hour? This is not a crowd. This is an algorithm.
2. Look at the pullbacks. If every pullback is bought automatically, that’s a buy.
3. Analyze behavior on low timeframes. 1m or 3m will show that each candle looks as if "someone is pressing Buy on schedule."
4. Want to enter? Go ahead with it. But don't be greedy. TWAP is not eternal. It will end, and the market can turn sharply.
🧩 Remember: while you are looking for confirmation, TWAP has already confirmed, bought in, and now you are its liquidity.
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