Been using VWAP for equity trades and it works pretty well for entries and exits.
Thinking about applying the same approach to forex pairs but not sure if it translates the same way given the different market structure and volume data.
VWAP can work in forex, but you may need to adjust your approach from stocks.
While the volume data is often lacking, focus on sessions where your broker sees decent flow.
I consider VWAP similar to a moving average in forex. It won’t be as precise as with stocks. It’s useful for confirming your bias, but you shouldn’t rely on it as your main signal.
VWAP can be unreliable for forex due to poor volume data compared to stocks.
Most retail platforms display only their own volume feed, making VWAP less effective.
I prefer using price action and support/resistance for making trades.
I dropped VWAP for forex after a few months. Volume data varies too much between brokers and is hard to trust.
VWAP works better on major pairs during the London and NY overlap when volume is high. Still not as reliable as with stocks.
VWAP can work but test it in real trades.
Retail brokers provide misleading volume data that reflects only their own client flow, leading to different numbers across platforms. To get accurate VWAP for forex, consider using institutional volume data, like CME futures feeds. While it may involve a cost, the data is reliable. Relying on retail broker volume for VWAP is typically ineffective since it results in distorted averages. It’s advisable to focus on strategies that work in forex, such as market structure breaks or central bank levels.
Used VWAP on EUR/USD and GBP/USD for six months. The math works fine but forex volume data is garbage.
It’s decent as a trend filter during busy sessions. Price above VWAP pulling back? Could be a solid long entry.
Don’t treat it like stocks though. I got way better results mixing it with daily pivots or key levels. VWAP alone gave me tons of fake signals, especially during Asian hours when volume dies.
Stick to major pairs only. Tried some exotic crosses and it was completely worthless.