Understanding VWAP (Volume Weighted Average Price) and order flow is crucial for making informed trading decisions. When the price is above VWAP with sustained positive pressure, it indicates strong buying interest and suggests that the market sentiment is bullish. You can gauge this by observing the price movement relative to VWAP and checking the volume behind the price action. If the price spikes above VWAP but lacks significant volume, it may signal a false breakout, as there's insufficient conviction to support the move. A solid decision rule is to look for price consistency above VWAP, combined with increasing volume to confirm the strength of the trend. NeuralStocks applies this automatically on every scan, so you don't have to check it by hand. Have you noticed any patterns in how price reacts around VWAP in your own trading? Follow @NeuralStocksAI for how NeuralStocks actually works, one piece at a time. Not financial advice.
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