How to use VWAP Trading Strategies(Volume Weighted Average Price) for Intraday
VWAP Trading Strategies :-
So you may be asking yourself, how do I trade using the VWAP indicator?The VWAP Pullback
n the 5-minute chart above you will notice two lines. The teal one is the 20-day moving average while the white one is the Volume Weighted Average Price, which is much slower moving. A strategy that a lot of traders use is to short when prices close below this key indicator and buy when they close above.
Another strategy that traders use is to let the market make a move for the first couple candles and then wait for a pullback to the VWAP to either get long with the trend or short with the trend, which ever way the market is moving.
This is a great area to enter a trade because you know if it closes on the other side of where you got in, then it’s time to get out and move on the next trade.
Just like in the chart, you will see that prices sold off, slowly rallied into the Volume Weighted Average Price and then sold off for another leg down. Your entry spot is as close as you can get to the VWAP and your stop would be with a close above it.
For profit targets you want to see it break lows, where can even add more size, and then start to take profits as it works in your favor.
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