Lesson on how to use VWAP (volume weighted average price) This in my opinion is hands down the best possible indicator one can use when day trading. VWAP is calculated by adding up the dollars traded for every transaction (price multiplied by the number of shares traded) and then dividing by the total shares traded. It acts as a massive support and resistance level on high-med-low cap stocks. Simple way to put it is, large institutional buyers, investment banks and hedge funds look to enter into a position when the share price is tradinf below the VWAP as they are mathematically getting those shares at a “discount”. For us day traders who dont have hundreds of millions of dollars we look to find a breakout above vwap to go long or a breakout below vwap to go short. Seen below in the picture is a 5-min candlestick chart, looking at both the 1-min and 5-min chart is key in succeding in playing off this indicator. There is bullish price movement followed by a period of consolidation, during that time of consolidation the vwap is “cutting” through the candles showing that both buyers and sellers are fighting for position and no clear dominant side is winning. Now coming to the most important part, we see 2 green 5 min candlesticks start to make a bullish pattern upwards and the 3rd green 5-MINUTE candle opens and closes above the vwap, this now signAls that buyers are in control of the price action and the price can be driven up. Key point To take away is you want your 5-minuTe caNdle to open and close above the VWAP. When using a 1-minute chart the price can break up and down through vwap making it much more difficult to read and evaluate. Try it out and lmk what you think! Using both the 1 and 5 min charts can be extremely powerful and profitable when utilized correcTly. If you found this helpful give me a follow :) i am up over $27,000 within this last month and i use VWAP on every single position i take. If you want to hate please do that too as my milkshake tastes pretty damn good this last month suckers. $Tesla Inc $Kartoon Studios Inc $State Street® SPDR® S&P 500® ETF Trust $Apple Inc $Snap Inc $Marin Software $XWELL Inc $Nio Inc. $ProShares UltraPro Short QQQ $NASDAQ $Invesco QQQ Trust $Hertz Glo Hldg $Amazon Com $Fisker Inc