What Is the Time-weighted Average Price (TWAP)?
The time-weighted average price (TWAP) is a trading indicator based on weighted average price, which shows the average price of an asset as it rises and falls during a given or specific time period.
In traditional finance, stock brokers often help traders and clients to execute large orders algorithmically over a set period of time to get the best price and reduce market impact. This happens through a TWAP order, which gives an asset’s price over a set period of time.
The brokers must first identify the opening, closing, high and low prices for the asset on a given day and then find the average of those daily prices for each day when tracking the asset to calculate the TWAP. Using the TWAP value, a large order into a few small orders is valued at the TWAP price because it is deemed the most critical.
Once each order is executed, there will be a delay for (duration/order count) minutes. For example, if the duration is 30 minutes, and the order count is 6, then there will be a (30 / 6) = 5-minute delay between each order. Generally, traders do this to avoid letting a huge order suddenly increase the value of a given asset in the market.
TWAP can be calculated for any specified time duration and does not take into consideration the number of shares traded at each price point measured, unlike the volume-weighted average price (VWAP) indicator.
However, in Decentralized Finance (DeFI), a Decentralized Exchange (DEX) using a time-weighted average market maker (TWAMM) aims to help traders execute large orders as efficiently and as quickly as possible, at low gas prices and without negatively affecting price.
This makes things much simpler while allowing traders and users to set relevant parameters without having to pay intermediary fees, unlike in traditional finance.
#IMX performed a great rally and moved around 21% in profit and now its trading near resistance and can further push if #BTC stables down. Now we're in bull run so we can expect the All Time high in altcoins too. We have a catalyst as Fed Cuts Rates by 25bps.
Читать полностью…#ARPA new partnership 🔥
https://x.com/arpaofficial/status/1854569512424947900?t=Gub47vkJngS1kLQhlcSpag&s=19
#AUCTION/BTC is a perfect buy now as it’s retesting historical support range on higher timeframe 👀
Get in now before takeoff 🛫
Massive announcement from the #AUCTION team🔥
https://x.com/bounce_finance/status/1854554510469005495?t=pwG45d5BPmME4wLvs6u1ZA&s=19
They're set for an epic month, and this is your last chance before things go parabolic.
The last time we saw this, the rally was explosive so BUY NOW or get left behind!🚀✌️
30 minutes left🚀
Get ready for a strong news based SPOT & FUTURES call at 4PM GMT today!
Exchange: Binance & MEXC
What Is a Time-Weighted Automated Market Maker (TWAMM)?
TWAMM refers to Time-Weighted Automated Market Maker. Its aim is to help traders execute large orders with minimal slippage and low gas fees without negatively affecting the price.
In traditional finance (TradFi), traders will often employ brokers to execute large orders algorithmically over a designated time frame, which often gets them the best price. This is often done in the most straightforward way via a Time-Weighted Average Price (TWAP) order, which gives a security or asset’s price over the designated time frame.
For example, when large traders want to buy an asset, like $10 million worth of Solana, they cannot just execute that as one trade as it will increase the market price by a large number. Typically they will use a trading desk or an algorithm to break down the $10 million order into smaller orders of $1,000 across many hours or days to have less impact on price in the market.
The TWAMM strives to emulate TWAP orders by breaking them up into a combination of an almost infinite number of small orders via an automated market maker (AMM) over a period of time.
This method of trading may result in prices deviating from the crypto market as a whole. The TWAMM relies on arbitrageurs to mitigate this issue, by trading against the AMM’s price to return it back to the market price, ensuring effective execution for long-term orders.
When traders place large buy orders on AMMS, they face the same problems encountered in TradFi due to the constant product formula utilized by the AMM, and buying all at once pushes market makers to raise the price against the trader. Breaking up the trades manually as an alternative can be time-consuming and costs extra gas fees due to the additional transactions required. The TWAMM aims to resolve this issue by automating the small trades, maximizing the smoothness of executing trades at minimal gas fees.
The TWAMM algorithm is one of the first in DeFi which allows users to enter parameters on how much to buy and sell of an asset over a time period like 1 week, number of hours, or days without going to a CEX or some trading desk.
As DeFi and crypto become more mainstream and larger investors enter the market, features like the TWAMM will become essential in facilitating a better trading experience for all users, further facilitating the adoption and usage of DEXs.
Here's the Analysis of #BETA :
#BETA build up a new support zone of $0.038 - $0.041 and kept on rejecting from the major resistance area of $0.055 - $0.057. Support looks good here and now we can see some move from here to rally high with the market, so take it accordingly.
If you Missed the 80% #ARPA pump after our call last time
Well, guess what – here’s your second chance to ride the wave and earn quick profit🚀✌️
#ARPA/USDT lying on uptrendline support on 1D timeframe, Big jump is expected from this level anytime soon🚀✌️
Buy on MEXC: https://www.mexc.com/exchange/ARPA_USDT
Buy on Binance: https://www.binance.com/en/trade/ARPA_USDT
Short term targets: 10%-30%-50%
Net capital inflows into the Bitcoin asset have also accelerated, increasing by $21.8B (+3.3%) over the last 30 days. This has resulted in the Realized Cap ticking up to a new ATH, reaching over $646B.
This suggests that liquidity across the asset class is rising, and meaningful capital inflows support the price increase.
#STORJ failed to hit the mentioned area and #BTC moved ATH in between. price respected the Trendline, trying to break the structure and move towards the Major resistance. A flip will confirm the Bullish move.
Читать полностью…Net capital inflows into the Bitcoin asset have also accelerated, increasing by $21.8B (+3.3%) over the last 30 days. This has resulted in the Realized Cap ticking up to a new ATH, reaching over $646B.
This suggests that liquidity across the asset class is rising, and meaningful capital inflows support the price increase.
#BTC didn't retraced lower and made a new #ATH from the previous market structural support area. Price again forming a support and might gonna see a new All-time high by NY session. Nothing much can be done here, as there's no level to the left, just hold the coins and enjoy the roller coaster. Next push can be estimated towards the $77,600 and then $82,300.
Читать полностью…#ETH performed very well with the analysis and reached the other end of the zone. Price now attempting the break of the resistance and might close strong bullish candle which can move it further highs.
Читать полностью…#ARPA/USDT bullish daily close after our call now looking ready for continuation from here🚀✌️
Читать полностью…The #AUCTION is about to explode in the coming days and there's nothing you can do to stop it.
This is your shot—get in NOW before it's too late🚀✌️
Buying big bag of #AUCTION/USDT🚀
Looks ready for a breakout anytime and is on strong horizontal support on weekly timeframe ✍🏻
Buy on MEXC: https://www.mexc.com/exchange/AUCTION_USDT
Buy on Binance: https://www.binance.com/en/trade/AUCTION_USDT
Short term targets: 10%-30%-50%
Stay tuned for a strong news based SPOT & FUTURES call at 4PM GMT today!
BTC just closed a massively bullish daily candle—ALTCOINS are primed for a HUGE rally! Our #ARPA call was a WINNER, and it's time to cash in again. Get ready for QUICK PROFITS!
Exchange: Binance & MEXC
#BTC had a very strong weekly closing and also going strong enough as Election results. Now, in technical view price is retracing back to some sort of H4 support before moving up, as its a healthy way which market moves.
Читать полностью…#ARPA/BTC is on very strong horizontal support here✌️
We’ve seen atleast 20% jump from this range so Get in now if you want to earn some quick bucks💸💸
https://x.com/arpaofficial/status/1854192185161429334?s=46
#ARPA team giving us hint for something big coming next week ✍🏻
Monster green candle for #ARPA is inevitable ✅
Don’t sleep on it😊
#ARPA looks a perfect buy here
RSI looks oversold on higher timeframe
Lying on historical weekly support
Looks ready for a takeoff anytime
Targets: $0.055-0.065-0.08-0.1$
1 hour left🚀
Get ready for a strong news based SPOT & FUTURES call at 4PM GMT today!
Exchange: Binance & MEXC
Stay tuned for a strong news based SPOT & FUTURES call at 4PM GMT today!
The market is on fire after trump’s win Bullish momentum is clearly seen on the charts and altcoins are about to explode
This is the momentum we’ve been waiting for so don’t miss out!
Exchange: Binance & MEXC
#BTC had a flip over the resistance area and going to have a moon shot to the upside and printed a new All Time High.
Читать полностью…