What are the best VWAP settings for day trading cryptocurrencies?

3 answers

• Dec 14, 2021 · 3 years ago
  VWAP is a trading indicator that calculates the average price of a cryptocurrency based on its trading volume throughout the day. It is commonly used by day traders to identify the average price at which a particular cryptocurrency has been traded. The best VWAP settings for day trading cryptocurrencies may vary depending on the trading strategy and the specific cryptocurrency being traded. It is recommended to experiment with different settings and observe how the VWAP line interacts with the price action to determine the most effective settings for your trading style.
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• Dec 14, 2021 · 3 years ago
  VWAP is like a moving average, but it takes into account the trading volume of each price level. This means that VWAP gives more weight to prices with higher trading volume. As for the best settings, it really depends on the time frame you are trading and the volatility of the cryptocurrency. Some traders prefer shorter time frames and more sensitive VWAP settings, while others prefer longer time frames and smoother VWAP settings. It's important to find the settings that work best for your trading style and the specific cryptocurrency you are trading.
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• Dec 14, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using a VWAP period of 20 for day trading cryptocurrencies. This setting provides a good balance between responsiveness and smoothness, allowing traders to capture short-term price movements while filtering out noise. However, it's important to note that the best VWAP settings may vary depending on market conditions and individual trading preferences. It's always a good idea to backtest different settings and adjust them based on your own trading experience.
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