"Volume Weighted Average Price (VWAP) is the ratio of the value traded to total volume traded over a particular time horizon. It is a measure of the average price at which a stock is traded over the trading horizon." Wikipedia. (Blue Lines).
I use a rule of thumb, never buy/long above vwap and never sell/short bellow vwap. Technically we are below the higher timeframe vwap's but we want the best price we can get on lower timeframes IF a reversal happens here, so we risk a trade setup finding undervalued prices at certain levels.
This could potentially lead into a nice long term trade. Just use risk management and watch for that area in yellow circle. After that, you don't want to be in the trade anymore.
Let's see!
I use a rule of thumb, never buy/long above vwap and never sell/short bellow vwap. Technically we are below the higher timeframe vwap's but we want the best price we can get on lower timeframes IF a reversal happens here, so we risk a trade setup finding undervalued prices at certain levels.
This could potentially lead into a nice long term trade. Just use risk management and watch for that area in yellow circle. After that, you don't want to be in the trade anymore.
Let's see!