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TA Challenge: VWAP, the "golden indicator" for intraday trading
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VWAP is the only indicator that doesn't change across all time frames and price want to go to it

The interesting thing about VWAP is it doesn't change across all minutes chart time frames and is the only indicator that able to do that. Hence, the Challenge's description "Golden" (but it can be misleading as no indicator is the "crack the code"). VWAP cannot be seen in daily chart as it merged within the day candles and hence no use for non intraday trading. As with all moving averages; they are lagging indicators except perhaps RSI provided you know how to use it correctly, not the traditional text books tell you.
I turned it on for reference. It's believe VWAP is where the institutional traders are waiting i.e. where a balance of buyers and sellers are. Also from my observations and day trading, I notice that the price wanted to rest at VWAP during non peak hours trading.
One way you can use VWAP is the determine the direction of your trade e.g. intraday long if above VWAP and short it when price below VWAP.
However, nothing beat watching and familiarise with typical price movements as far as timing is concerned as they always showing the same patterns. Intraday trading is all about timing i.e. knowing when to  get on board before it happened and usually trade the peak hours where the huge quick momentum are but it can be very volatile as institutions will always try to wash you off before deciding on direction they want the price to move for the day.  It is a tough cat and mouse game as institutions also deployed Algo for intraday. A day can have multiple directions especially during current period of extreme volatility.  A good day trader could make a lot of money during this period or lose a lot.  Holding longer than necessary can be a bad idea for day trading. Risk or money management matters most; not the technique.
Use VWAP as a guide for key reversal trade as price wants to go back to it and it can happened multiple times in a day.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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