Discussions

I've been interested in technical analysis for a long time and am constantly searching for tools that truly help me make more informed decisions in the market. One of the most useful discoveries for me was the volume weighted average price indicator. After I started actively using it in chart analysis, the quality of my trades significantly improved. The main advantage of VWAP is that it takes into account not only price but also trading volume. Essentially, it's the average price of an asset over a certain period, weighted by trading volume. Thanks to this, the indicator displays a more accurate "fair" market price and helps understand where the main trading activity is concentrated. In practice, VWAP works excellent as a benchmark for determining the trend. When the price is above the indicator line, the market is more often bullish, and when it's below, selling pressure prevails. This helps you quickly assess the current situation and choose the right moment to enter or exit a trade.