common-close-0
BYDFi
Trade wherever you are!

What is the difference between VWAP and anchored VWAP in the context of cryptocurrency trading?

avatarLujain AlhusneDec 25, 2021 · 3 years ago1 answers

Can you explain the difference between VWAP and anchored VWAP in the context of cryptocurrency trading? How do these two indicators work and what are their applications in the cryptocurrency market?

What is the difference between VWAP and anchored VWAP in the context of cryptocurrency trading?
Cryptocurrency
Trading
VWAP

1 answers

  • avatarDec 25, 2021 · 3 years ago
    VWAP and anchored VWAP are two popular indicators used by traders in the cryptocurrency market. VWAP calculates the average price of an asset based on its trading volume, giving more weight to trades with higher volume. This indicator is often used to identify the average price at which large institutional traders have executed their orders. Anchored VWAP is a variation of VWAP that allows traders to anchor the calculation to a specific point in time, such as the opening or closing price. This can help traders analyze the price action and volume at specific points in time and make more informed trading decisions. While VWAP is commonly used for intraday trading, anchored VWAP is useful for analyzing longer-term trends and identifying key support and resistance levels. Both indicators can be used to confirm trends, identify potential entry and exit points, and improve overall trading strategies in the cryptocurrency market.

Related questions

common-arrow-bottom-0Load 5 more related questions
common-search-0

Related Tags

Hot Questions