How does VWAP bands work?

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Miguel Aguilar
Answered 2 months ago
<p>VWAP (Volume Weighted Average Price) bands, derived from the VWAP indicator, are used to identify potential support and resistance levels based on price and volume data. These bands are typically plotted as lines above and below the VWAP line, with the space between the bands representing a range of probable price movement.&nbsp;</p>