What are the recommended VWAP settings to use on Thinkorswim when trading digital currencies?
LeodatriboDec 17, 2021 · 3 years ago3 answers
I'm new to trading digital currencies on Thinkorswim and I've heard about VWAP settings. Can someone please explain what VWAP is and what are the recommended settings to use on Thinkorswim for trading digital currencies?
3 answers
- Dec 17, 2021 · 3 years agoVWAP stands for Volume-Weighted Average Price, which is a trading indicator that calculates the average price weighted by the trading volume. It is commonly used by traders to identify the average price at which a particular asset is being traded over a specific period of time. When trading digital currencies on Thinkorswim, the recommended VWAP settings may vary depending on your trading strategy and preferences. It is advisable to experiment with different settings and observe how the VWAP indicator performs with your chosen digital currencies. Some traders prefer shorter timeframes, such as 5 or 15 minutes, while others may use longer timeframes like 30 minutes or 1 hour. Ultimately, the best VWAP settings for trading digital currencies on Thinkorswim will depend on your individual trading style and goals.
- Dec 17, 2021 · 3 years agoWhen trading digital currencies on Thinkorswim, it's important to understand that there is no one-size-fits-all answer to the recommended VWAP settings. The optimal settings will depend on various factors, such as the volatility of the digital currency, the time frame you are trading on, and your personal trading strategy. It's recommended to start with the default VWAP settings on Thinkorswim and then adjust them based on your own observations and preferences. Additionally, it can be helpful to consult with experienced traders or seek out educational resources to learn more about VWAP and how it can be effectively used in digital currency trading.
- Dec 17, 2021 · 3 years agoBYDFi, a popular digital currency exchange, recommends using a 30-minute VWAP setting when trading digital currencies on Thinkorswim. This setting provides a good balance between capturing short-term price movements and providing a broader view of the market trend. However, it's important to note that the optimal VWAP settings may vary depending on the specific digital currency being traded and the market conditions. It's always a good idea to experiment with different settings and observe how they perform with your chosen digital currencies on Thinkorswim.
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