1. What is VWAP?
Volume-Weighted Average Price, VWAP, averages price with volume weighting. The source describes it as one of the indicators most widely followed by institutional investors.
2. Interpretation
📊 Reading VWAP
Price > VWAP: Buyers dominate; a bullish signal in this framework.
Price < VWAP: Sellers dominate; a bearish signal.
Price returns to VWAP: A possible buying or selling opportunity.
3. Trading strategies
- VWAP reversion: When price moves far from VWAP, trade toward a return to the average.
- VWAP breakout: Trade with the trend when price breaks strongly through VWAP.
- Anchored VWAP: Calculate VWAP from a specific event to analyze support and resistance.
4. AI volume analysis
The original guide describes NOONOO TRADING as analyzing volume data, including VWAP, to distinguish genuine trends from misleading moves.