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vwapdef

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๐Ÿ“˜ What is VWAP?

VWAP stands for Volume Weighted Average Price.

๐Ÿ” 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.

๐Ÿง  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.

๐Ÿ“ˆ 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.1743915737.txt.gz ยท Last modified: 2025/04/06 05:02 by lwattsii