What is VWAP trading? The volume-weighted average price (VWAP) is a technical analysis indicator used on intraday charts that resets at the start of every new trading session. It’s a trading benchmark that represents the average price a security has traded at throughout the day, based on both volume and price.
Can you use VWAP for crypto? VWAP is a day trader tool. Therefore, if you like to day trade crypto and hold your trades for less than a day, VWAP is a good tool to use. Crypto day traders are likely to use minute charts, such as 1-, 3-, 5- or 15-minute.
What are the 3 VWAP lines? This should provide you with three lines — the upper deviation band is essentially an overbought level, and the lower band is an oversold level, both plotted a specified number of standard deviations (based on the difference between the stock price and VWAP) above VWAP, which is the middle line (in purple above).
Which technical indicator is the most accurate? The Moving-Average Convergence/Divergence line or MACD is probably the most widely used technical indicator. Along with trends, it also signals the momentum of a stock. The MACD line compares the short-term and long-term momentum of a stock in order to estimate its future direction.