Tag Archives: volume weighted average price

Cryptocurrency Risk on volume weighted average price stat is negative since May 16

It seems that the cryptocurrency is more negative than positive. I have also tested many different threshold to have higher probability of profit. It seems that this volume weighted average price metric needs to be at close around 2. Here the average is -0.21 which shows the amount of downward pressure on the entire asset class.

How is this volume weighted average price calculated?

I use the volume and hourly price of BTC, ETH, LTC, ETC, and BCH to measure it. This is also measured hourly as you can find in the image.

What does this mean?

It seems that the space is more negative with whipsaws that take out open positions. They come out of nowhere which means you get a very high probability of losing positions. It seems that is quite difficult to trade in these conditions. When the overall crypto space (usually driven by the performance of BTC), it seems the trading conditions are never good to fight upstream a surging river. I have tested this since Friday these conditions. Over the last 24 hours, it just seems there are more negative positions than positive even if this average price hits close to 0.94.

As a result, it might be best just to wait it out until automated trading kicks when this average price hits around 1.5 or 2 for higher probability of winning positions. How often this happens is another question. We shall be ready when it does happen.

What you seen in red is the average price of what is described above.

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!