How can we use VWAP indicator for better profit?

<p id="isPasted">You can use the Volume-Weighted Average Price (VWAP) indicator for better profit by using it as a dynamic support/resistance level, a trend confirmation tool, and a benchmark for optimal entry and exit points during intraday trading. VWAP is particularly effective because it incorporates volume, giving a more accurate picture of market sentiment than simple moving averages.&nbsp;</p><p><strong>VWAP Trading Strategies for Profit</strong></p><p><strong>Trend Confirmation</strong></p><ul><li>Bullish Trend: When the price is consistently trading above the VWAP line, it suggests a strong uptrend and prevailing bullish sentiment. Traders might enter a long position when the price pulls back to the VWAP and bounces, confirming support.</li><li>Bearish Trend: When the price is consistently trading below the VWAP line, it indicates a strong downtrend and bearish sentiment. Traders might consider a short position when the price rallies up to the VWAP but fails to break through (rejection at resistance). </li></ul><p><strong>Support and Resistance</strong></p><p>The VWAP acts as a dynamic support or resistance level that many institutional traders watch.&nbsp;</p><ul><li>Long Entry: Look for price bouncing off the VWAP in an uptrend, using the VWAP line as a support level.</li><li>Short Entry: Watch for price rejection at the VWAP in a downtrend, using the line as a resistance level. </li></ul><p><strong>Breakout and Crossover</strong></p><ul><li>VWAP Breakout: A decisive break above or below the VWAP line with a significant increase in volume can signal a new, strong trend is beginning, providing an entry signal.</li><li>Moving Average Crossover: Combining VWAP with a short-term moving average (like the 9-period EMA) can provide stronger signals. A bullish crossover happens when the EMA crosses above VWAP, indicating a potential long entry.</li></ul>