VWAP is the single most important filter which I've used in my trading system for a long time now.

Here are my 2 cents about it. Just reiterating the practical uses of VWAP ❤️

Following is the MEGA Thread on VWAP 🧵🧵

Importance of VWAP in intraday trading

VWAP stands for Volume Weighted Average Price, it takes in account the price average with volume included in it. Let’s not stick to the mathematical part and focus on the practical uses of the same.

VWAP is reset everyday, however the previous day VWAP also plays an important role as you’ll see later in this thread.

If any price is trading above the VWAP for 1 hour, it shows that more or less buyers are in net gains for that day so far, so as a filter: I never buy anything which is below the VWAP or sell anything that is above the VWAP

I do have many criteria for taking a trade, but I hope you understand that VWAP can be a really good Filter to clear out 50% of your wrong trades.