What are the most effective VWAP settings for day trading digital assets?

3 answers

• Dec 17, 2021 · 3 years ago
  VWAP settings refer to the parameters used to calculate the VWAP indicator. The most common settings include the time period (e.g., 1 minute, 5 minutes, 15 minutes) and the start and end times for the calculation. The effectiveness of VWAP settings depends on various factors such as the volatility of the digital asset, the trading volume, and the desired trading strategy. It's recommended to experiment with different settings and analyze the results to find the most effective VWAP settings for day trading digital assets.
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• Dec 17, 2021 · 3 years ago
  Finding the most effective VWAP settings for day trading digital assets can be a trial-and-error process. Start by selecting a time period that aligns with your trading strategy and the timeframe you're most active in. For example, if you're a day trader, you may want to use a shorter time period like 1 or 5 minutes. Additionally, consider adjusting the start and end times to capture the most relevant trading activity. Keep in mind that what works for one digital asset may not work for another, so it's important to adapt your VWAP settings based on the specific characteristics of the asset you're trading.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we've found that using a 15-minute time period for VWAP calculations works well for day trading digital assets. This setting provides a good balance between capturing short-term price movements and smoothing out noise. However, it's important to note that VWAP settings are not a one-size-fits-all solution. Traders should consider their own trading style, the specific digital asset being traded, and market conditions when determining the most effective VWAP settings for day trading.
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