Video Transcript Do you trade using Daily, Weekly, or Monthly VWAP? Then there’s one important thing that you should know. When a new VWAP starts, it hasn’t collected enough data yet, which makes its levels unstable and less reliable for trading. So, how long should you wait before you can actually trust those levels? Let me show you how I approach this with the Daily, Weekly, Monthly, and even Yearly VWAP. I think it’s pretty important to let the VWAP develop before you start trading with it. The reason for waiting for the VWAP to develop is this: the VWAP starts calculating anew. For example, every new day, a new Daily VWAP starts getting calculated, and it pulls data from here. It doesn’t have any historical data, so it starts from here and begins collecting volume, price, and time data. In the initial period, it doesn’t have enough data, so it’s sort of wild. It’s still collecting data, but later, it has more data. The indicator becomes wider, it’s more stable, and you can depend o...
I am a professional trader with 10+ years of trading experience. I trade using Volume Profile which is a tool that shows you where institutions accumulate their positions and what their intentions are.