Is VWAP an important part of your E-Mini Trading Plan?

If you’ve read any of my articles, I know of a complete disdain for lagging indicators. Including and using a weighted average volume price (VWAP) in my chart seems to be a (hypocritical) contradiction in my trading style. I answer that “guilty”. It is a good indicator for tracking your daily internal movement and your daily location in terms of your exact location. There are those who use VWAP to access professions; In this respect, I do not find it useful, but there are many other uses for this valuable indicator.

I have seen that many traders and trading room operators start trading in the direction of price movement as the average volume moves along the price line. I have never traded in this way as it is not the main indicator to start trading in my world. That said, I have seen many merchants do business with great success on VWAP. Since I do not trade this indicator in this way, I cannot give you any hard data to support this particular trading strategy. I did a scientific and quick back-testing that shows that this strategy is moderately successful. no “cure” for getting into trades, not for long.

What is this indicator for?

As I said from the beginning, there are fewer useful techniques for using the weighted average price of volume and others that are useful. For me, I use the indicator to fix the bias in the direction of trading and to monitor the market price throughout the day. On this day with significant ups and downs, it can be difficult to orient yourself about the position of the future chart; you want something that reflects a neutral attitude. Of course, this particular indicator works considerably better than the moving average, but that doesn’t delay it; so it is a good exchange for me to establish the normative value of summation by combining volume and price movement. It’s like having GPS in a very large forest; at least you know where you started the day and you can easily return to that place. It seems that traders lose track of their location on a given day and it becomes difficult to set trend or parenthesis parameters.

VWAP is a standard indicator on many trading platforms and the Internet is equipped with “do it yourself” instructions for programming that indicator on the platform API.

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