VWAP OSCILLATOR
VWAP OSCILLATOR plots the difference between shorter time frame vwap and longer time frame vwap.
Preferred combinations are:
Daily chart - Weekly and Monthly or Monthly and Quarterly
Weekly chart - Quarterly and Yearly
Whenever VWAP OSC is above zero, shorts should never be taken.
Whenever VWAP OSC is below zero, longs should never be taken.
However it can also be used as a trend reversal set up. Whenever longer time frame vwap is sloping upwards and vwap oscillator is below zero and started to slope upwards, get ready to buy. Similar logic for shorts.
Preferred combinations are:
Daily chart - Weekly and Monthly or Monthly and Quarterly
Weekly chart - Quarterly and Yearly
Whenever VWAP OSC is above zero, shorts should never be taken.
Whenever VWAP OSC is below zero, longs should never be taken.
However it can also be used as a trend reversal set up. Whenever longer time frame vwap is sloping upwards and vwap oscillator is below zero and started to slope upwards, get ready to buy. Similar logic for shorts.
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