Simple. In layman terms, VWAP is simply the price where most bulls/bears have traded significant size. So it'll always be an emotional price area intraday or even days later. If the price is below it you best believe a lot of bulls are staring at a negative unrealized PNL.
For lowfloats (that tend to trade a ton of volume in one day, then very pussy volume the following days), a big volume day's VWAP remains important even weeks later, since many traders remain trapped at that level. So a bigvolume day's vwap can affect future price (as resistance)
I can pullup my data sheets and show u thousands of examples, but the most recent one is Friday's $MTP.
Look at the VWAP of the last time it ran with huge volume ( 8/14). then look where it topped out premarket on friday. thank me later.
#BearTipOfTheDay
Look at the VWAP of the last time it ran with huge volume ( 8/14). then look where it topped out premarket on friday. thank me later.
#BearTipOfTheDay
Loading suggestions...