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Volume Weighted Average Price Ratio (log) [ilyaQwerty]

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The VWAP Ratio indicator is a valuable tool for traders aiming to assess market trends and price movements in relation to the Volume Weighted Average Price (VWAP). Volume Weighted Average Price Ratio represents the ratio of the price of the asset compared to total traded volume in US Dollars. In a context of Bitcoin, VWAP ratio helps traders assess the market state, if it is overvalued or undervalued. High values of the indicator can suggest that the market is highly overvalued and low values can indicate a great buying opportunity.

  • Ratio Calculation: The VWAP Ratio is computed by dividing the current price by the VWAP (Price / VWAP). VWAP represents a ratio between a cumulative sum of a traded value (price multiplied by the volume) and a cumulative traded volume.
  • BTC-Specific Optimization: Although the indicator can be applied to various assets, the VWAP Ratio indicator is particularly useful for Bitcoin (BTC) due to its significant trading volume and unique market behaviour.

Penafian

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