[[https://www.xpressnets.com/wiki/doku.php?id=gptplaybook|Back]] ===== 📘 What is VWAP? ===== **VWAP** stands for **Volume Weighted Average Price**. ==== 🔍 Definition ==== VWAP is a trading indicator that shows the **average price** a security has traded at throughout the day, **weighted by volume**. It provides a real-time view of where most trading activity is happening. ==== 🧠 Why Traders Use It ==== * **Institutions** use it to gauge fair value throughout the day. * **Scalpers and day traders** use it as **dynamic support/resistance**. * Helps identify whether price is trading **above or below average value**. ==== 📈 How It's Interpreted ==== * **Price above VWAP** → Bullish bias – buyers are in control * **Price below VWAP** → Bearish bias – sellers are in control * **Price bouncing off VWAP** → Potential entry for **trend continuation** * **Price crossing VWAP** → Possible **shift in intraday sentiment** ---- {{ :vwapdef.jpg?400 |}}