167. VWAP Explained: Why Most Traders Use It Wrong
About this episode
This episode explains the volume weighted average price (VWAP) and its common misuses among traders.
VWAP is one of the most popular indicators in trading, but it is also one of the most misunderstood. In episode 167 of Let’s Talk Forex, Alison and Chris explain what the volume weighted average price actually represents, how institutions use it as an execution benchmark, and why many retail traders misuse it as a support and resistance tool. You will understand when VWAP works best, why it fails under certain market conditions, how liquidity sessions and news events affect it, and how traders should use VWAP as a contextual tool rather than a trading signal. If you want to understand VWAP properly and avoid one of the most common trading mistakes, this episode will change how you look at the indicator.
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