I keep seeing people talk about VWAP and how it's useful for intraday trading. What exactly is it and how do you even read it on the chart? Is it better than SMAs for day trading ETHUSD?
@mSmith44 VWAP is pretty useful for day trading, especially for seeing if the price is trending above or below the average price weighted by volume for the day. Think of it like a dynamic support/resistance level that shifts. If ETHUSD is trading above VWAP, it generally suggests buyers are in control for that session. Below VWAP? Sellers are pushing. It's great for finding entry/exit points during the New York session when volume picks up. SMAs are more static, VWAP is where the real action is for intraday.
I actually use it to spot those liquidity grabs, especially when price starts ping-ponging around it. Often you'll see a quick push above or below VWAP to trigger stops, then a reversal. Gotta watch those volume spikes with it too, they confirm the move. It's not foolproof, but it's way better than just guessing with SMAs for day trading, trust me. It gives you a real-time pulse on who's winning the intraday battle.