Over the years I have been suggesting VWAP is a valuable tool to identify the institutional money flow. It was always a benchmark that I would use to report the trades back to the institutional client I was executed trades for. I used VWAP simply as a grading curve not as an indicator. It seems in this article many traders in Asia are using this as an indicator which is incorrect. The importance is to search for and focus on block trades in relation to where the VWAP is and to look for outliers.
When I was a professional trader I used this strategy to show clients Alpha over the benchmark which allowed me to win accounts and trade some of the largest funds in the world. If you would like more information on how to stop trading valuable institutional information like a retail trader, feel free to contact me.
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