vwapdef
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Table of Contents
๐ What is VWAP?
VWAP stands for Volume Weighted Average Price.
๐ 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.
๐ง 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.
๐ How It's Interpreted
- Price above VWAP โ Bullish bias โ buyers are in control
- Price below VWAP โ Bearish bias โ sellers are in control
- Price bouncing off VWAP โ Potential entry for trend continuation
- Price crossing VWAP โ Possible shift in intraday sentiment
Let me know if you'd like a visual example or script to plot VWAP!
vwapdef.1743915697.txt.gz ยท Last modified: 2025/04/06 05:01 by lwattsii