How to Become a Trading Expert — Volume Weighted Average Price (VWAP) Institutions don’t rely on simple moving averages—they use VWAP (Volume Weighted Average Price), the day’s “fair price.” Core principle: If price is above VWAP, institutions tend to be bullish. Usage: A price pullback to VWAP that holds without breaking is an extremely strong trend-following entry point. Detail: Combine VWAP with Standard Deviation Bands to identify extreme overbought or oversold conditions. By following the average cost, you’re less likely to get left behind.
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