What are the recommended VWAP settings for analyzing cryptocurrency market trends?

3 answers

• Dec 28, 2021 · 3 years ago
  To effectively analyze cryptocurrency market trends using VWAP, it's important to consider the appropriate settings. Generally, a time period of 30 minutes to 1 hour is recommended for intraday analysis, while longer time periods such as 1 day or 1 week can be used for longer-term trends. As for volume, it's advisable to use the total trading volume of the cryptocurrency during the selected time period. By using these settings, you can gain insights into the average price at which the cryptocurrency has been traded, and identify potential support and resistance levels.
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• Dec 28, 2021 · 3 years ago
  When it comes to VWAP settings for analyzing cryptocurrency market trends, there is no one-size-fits-all answer. The optimal settings may vary depending on the specific cryptocurrency, market conditions, and your trading strategy. It's important to experiment with different time periods and volume settings to find what works best for you. Additionally, consider using multiple time frames to get a more comprehensive view of the market trends. Remember, VWAP is just one tool among many, so it's important to combine it with other technical indicators and analysis methods for a well-rounded approach.
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• Dec 28, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using a time period of 1 hour and the total trading volume of the cryptocurrency during that hour for VWAP analysis. This setting provides a good balance between capturing short-term fluctuations and identifying longer-term trends. However, keep in mind that VWAP is just one tool and should be used in conjunction with other indicators and analysis techniques to make informed trading decisions.
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