Vwap

Tony was asking about the Vwap, a while back... Curious how much I though traders looked at it. After days of deliberation... What I think is that it's psycological. Day traders want to be "In the Green" So As you can see.. Right now the winners will be the ones short... Now if we can break above it the winners will be the ones that are long.... In a way it's a great measure of people moving from one side of the boat to the other. In a way it makes a great oscillator. But in an environment where money flows are Neutral, and all the money flow is day traders. There is a greater tendency for intraday mean reversion.(meaning a market that opens and closes at the same level.

What I'm getting at is that the further below the vwap, the less likely shorts will cover, and the higher above it, the less likely there will be sellers.