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TagsHow does VWAP act as a lagging indicator in the context of cryptocurrency?
Lukas NeubauerJan 15, 2022 · 3 years ago1 answersCan you explain how the Volume-Weighted Average Price (VWAP) acts as a lagging indicator in the context of cryptocurrency? How does it affect trading decisions and what are its limitations?
1 answers
- VWAP is a lagging indicator that can be used in cryptocurrency trading. It calculates the average price of a cryptocurrency over a specific time period, taking into account the trading volume during that period. Traders use VWAP to assess the average price at which a cryptocurrency has been traded, helping them identify potential trends and support/resistance levels. However, it's important to note that VWAP is based on historical data and may not accurately predict future price movements. Traders should consider other indicators and factors before making trading decisions solely based on VWAP.Jan 15, 2022 · 3 years ago
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