I've been considering taking off the only moving average on my charts -- an ema 20 -- and replacing it with a
VWAP. Over the past couple months, I have outgrown one of my last "hard-fast" rules in trading, which is to only trade on one side of the EMA 20. I don't really use this rule any longer, as I felt it was holding me back more than it was helping me. Sure, there are many times it makes sense, but many times it does not.
VWAP, on the other hand, seems to fit my current trading style better. Which is a bigger picture of support and resistance, or an area which price tends to gravitate towards. I know that many institutions use
VWAP as a measurement to determine efficiency for that days buying, how close was the traders average price for the day in comparison with
VWAP, etc.
