What are the best VWAP settings for trading cryptocurrencies?

3 answers

• Jan 13, 2022 · 3 years ago
  VWAP is a trading indicator that calculates the average price of a cryptocurrency based on its trading volume. The best settings for VWAP depend on your trading strategy and the specific cryptocurrency you're trading. It's recommended to experiment with different settings and observe how the VWAP line reacts to price movements. Generally, shorter time periods like 5 or 10 minutes are more responsive to short-term price changes, while longer time periods like 30 or 60 minutes provide a smoother average. Keep in mind that VWAP is just one tool among many, and it's important to consider other indicators and factors when making trading decisions.
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• Jan 13, 2022 · 3 years ago
  VWAP is like a moving average that takes into account the trading volume of a cryptocurrency. It can help identify the average price at which most trading activity occurred. The best VWAP settings for trading cryptocurrencies can vary depending on the market conditions and the specific cryptocurrency you're trading. Some traders prefer shorter time periods like 5 or 10 minutes for more precise entries and exits, while others may use longer time periods like 30 or 60 minutes for a broader view of the market. Ultimately, it's important to test different settings and find what works best for your trading style and goals.
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• Jan 13, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using a 30-minute VWAP setting for trading cryptocurrencies. This time period provides a good balance between responsiveness to short-term price movements and a smoother average. However, it's important to note that the best VWAP settings can vary depending on the specific cryptocurrency and market conditions. It's always a good idea to experiment with different settings and adjust them based on your trading strategy and goals.
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