What are the most commonly used VWAP indicator settings among professional cryptocurrency traders?
Misael BritoMar 30, 2024 · 2 years ago3 answers
What are the preferred settings for the Volume-Weighted Average Price (VWAP) indicator that professional cryptocurrency traders commonly use?
3 answers
- Olivetree MarketingOct 04, 2025 · a month agoProfessional cryptocurrency traders often use the VWAP indicator with a time period of 20 or 30 minutes. This time frame allows them to capture the average price over a relatively short period, which is useful for intraday trading. Additionally, they often set the VWAP indicator to use the closing price as the anchor point, as it provides a more accurate representation of the market sentiment. By using these settings, traders can effectively gauge the overall market trend and make informed trading decisions.
- Sudip ShresthaNov 14, 2023 · 2 years agoWhen it comes to the VWAP indicator, professional cryptocurrency traders tend to favor shorter time periods, such as 5 or 10 minutes. This allows them to capture more recent price data and react quickly to market movements. Additionally, they often use the typical price (average of high, low, and close) as the anchor point for calculating VWAP. By using these settings, traders can get a better sense of the prevailing market sentiment and adjust their trading strategies accordingly.
- Lakeland TowingApr 27, 2023 · 3 years agoBased on my experience as a professional trader at BYDFi, the most commonly used VWAP indicator settings among professional cryptocurrency traders are a time period of 30 minutes and the closing price as the anchor point. These settings provide a good balance between capturing short-term price movements and overall market sentiment. Traders can rely on the VWAP indicator to identify potential support and resistance levels, as well as to confirm the strength of a trend. It's important to note that individual preferences may vary, but these settings are widely adopted in the industry.
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